The Weekly Market Update
News & Insights
w/c 2nd November: Interest Rates
GBP
The British Pound strengthened last week, supported by falling UK borrowing costs and a positive market response to the government’s Budget plans. However, weaker UK growth forecasts limited gains. Looking ahead, attention turns to the Bank of England’s interest rate decision on Thursday. Its comments on future rate changes could influence the Pound, while uncertainty over the UK economic outlook may create further pressure on the Pound.
EUR
The Euro faced pressure last week as concerns over France’s rising debt and political unrest unsettled investors. Despite stronger than expected economic growth across the Eurozone, these worries continued to weigh on the currency. Looking ahead, October inflation figures could provide some support if prices rise as expected. However, ongoing uncertainty surrounding France’s finances may limit any recovery and keep the Euro under pressure.
USD
The US Dollar weakened last week after the Federal Reserve kept interest rates unchanged and signalled caution over future decisions. Although stronger economic growth offered some support, concerns over the technology sector and political uncertainty weighed on the currency. Looking ahead, attention turns to US jobs figures and the mid-term elections. Weak employment data or an unfavourable election result could place further pressure on the Dollar.
Stay ahead with our weekly market updates, delivered straight to your inbox.