GBP slips on weak UK data
Daily Currency Update
The British Pound fell sharply after weaker-than-expected retail sales data revealed a notable drop in September consumer spending. The figures reinforced concerns that the UK economy is losing momentum amid stubborn inflation and cautious household sentiment, keeping Sterling under pressure across major currency pairs..Looking ahead, the market's full attention now shifts to the North American session, with the US Dollar maintaining a firm tone following its strong performance earlier in the week. The focus today will be on US data, including the latest Manufacturing and Services PMI readings and the University of Michigan Consumer Sentiment Index. Strong US economic data will likely confirm the Federal Reserve's patient stance on interest rates, further supporting the Greenback into the weekend.
Key Movers
The Euro has remained relatively steady following the final release of Eurozone CPI. Headline inflation was confirmed at 2.2% year-on-year for September, a small increase driven primarily by volatile energy costs. Crucially, the Core CPI figure held steady at 2.3%, suggesting that underlying inflationary pressures are moderating slowly but without surprising the market. This print does little to challenge the market's expectation that the European Central Bank remains on track for potential rate cuts towards the end of the year, leading to limited directional movement for the Euro against the US Dollar.Expected Ranges
- GBP/USD: 1.3370 - 1.3420 ▼
- GBP/EUR: 1.1430 - 1.149 ▼
- GBP/AUD: 2.0760 - 2.0820 ▲
- EUR/USD: 1.17 - 1.1720 ▲