The Weekly Market Update
News & Insights
w/c 13th October: Weighed Down
GBP
The British Pound is under pressure as domestic concerns take centre stage. Investors are increasingly worried about the UK’s deteriorating fiscal position ahead of November’s budget, with speculation rising around potential tax increases and spending cuts. Recent economic data, including slowing wage growth and rising unemployment, has reinforced expectations of interest rate cuts from the Bank of England. Ultimately, these factors have combined to weigh on the British Pound.
EUR
The Euro lost some ground early last week as political instability in France and weak German industrial data undermined investor confidence. The surprise resignation of French Prime Minister Sébastien Lecornu rattled markets before his reappointment helped calm fears and restore some stability. Despite this partial recovery, the Euro remains weighed down by structural issues, including persistent weakness in German economic output and fading momentum from earlier fiscal stimulus hopes.
USD
The U.S. Dollar held firm last week, buoyed by safe-haven demand amid escalating geopolitical tensions and U.S.-China trade risks. While Trump’s tariff threats initially triggered a sharp selloff, weekend efforts to cool tensions helped the Dollar regain footing. The greenback also found support from weakness in rival currencies like the Euro. With inflation data due and ongoing trade negotiations in focus, market sentiment toward the Dollar remains cautiously optimistic heading into the week.
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