The Weekly Market Update
News & Insights
w/c 21st September: Cautious BofE
GBP
The British Pound came under pressure last week following weaker UK economic data and the Bank of England’s cautious approach to interest rates. However, stronger retail sales helped the Pound recover some ground. This week, UK business activity figures could provide further support if they show the economy gaining momentum, potentially helping the Pound regain some of its recent losses.
EUR
The Euro faced some pressure last week as economic data offered mixed signals. Germany’s improving confidence fell short of expectations, while industrial production declined slightly. The currency also came under pressure from wider market movements and changing expectations around interest rates. This week, Eurozone business activity figures could provide support if they show stronger growth, although weaker consumer confidence may weigh on sentiment.
USD
The US Dollar strengthened last week after the Federal Reserve raised interest rates and signalled that another increase could follow later this year. This boosted confidence in the Dollar, although some gains faded as investors took profits. Looking ahead, weaker US economic data could limit the Dollar’s recent strength, particularly if durable goods orders show signs of slowing.
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