The Pound picked up momentum on Wednesday, making gains against both the Euro and the US dollar with the Foreign Exchange Market showing rates of 1.102 and 1.2927 respectively. Speculation surrounding interest rate cuts were dampened following comments from the Bank of England, helping to push the GBP/EUR rate higher. The UK’s final GDP reading for the second quarter saw a small revision, bringing contraction down to 19.8% from 20.4%, adding further support to the currency.
The Euro saw itself weaken against both GBP and USD following comments that the economic recovery was not where it should be, with weak inflation posting significant challenges to the ECB. Today, the latest job figures are likely to weigh heavily on the Euro causing it to stay on the defensive.
There was not much movement for the US Dollar on Wednesday during the European session as any gains it had made were lost following the first election debate and the clash between Biden and Trump. Despite a better-than-expected increase in US payroll numbers during September, the US Dollar still couldn’t gain any traction. However, the latest ISM manufacturing PMI release today could help to strengthen the US Dollar if the figures highlight an improvement.