The Weekly Market Update
News & Insights
w/c 14th September: Global Uncertainty
GBP
The British Pound had a mixed week, with concerns over inflation, energy costs and global market uncertainty weighing on sentiment. However, stronger than expected UK economic growth provided some support. This week, attention will focus on the Bank of England’s decision and its guidance on future policy. A cautious approach could put pressure on the Pound, while stronger economic data may help improve confidence.
EUR
The Euro outlook remains steady as the European Central Bank takes a cautious approach to managing inflation. The ECB has raised its inflation forecasts while noting that economic growth has remained resilient. Further policy tightening remains uncertain, as the bank may be reluctant to risk weakening the economy. Overall, the Euro faces a balance between controlling inflation and supporting continued economic growth.
USD
The US Dollar strengthened during the week as global uncertainty increased, encouraging demand for it as a safer option. Rising energy prices and concerns about inflation also supported the currency. Strong US inflation data increased expectations of tighter monetary policy. This week, attention will focus on the Federal Reserve’s decision, with a tougher stance potentially supporting further gains for the US Dollar.
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