GBP: Sterling lost most of its gains by the end of the summer after being the best-performing G10 currency at the beginning of the season. This put pressure on the British Pound since market investors anticipate that the BoE would keep its monetary policy in place at its upcoming meeting. Sterling actually fell against the dollar by about 4% in the third quarter. Going forward, GBP pairs are still at the mercy of the mood on the world markets since no economic data from the UK is scheduled to be revealed this week.
EUR: The Euro has been consolidating its recent losses as speculation that further ECB rate hikes may be off the table for the time being has been fueled by signals of the beginning of the end of the high inflation in the Eurozone. The single currency of the EU has been hindered by this as well as rumours that the GDP may fall in the second half of the year.
USD: The U.S. Dollar Index held its ground and stood not too far from its recent 10-month high, last seen trading at 106.27. This follows its best quarterly performance in a year last month thanks to persistently hawkish Federal Reserve rhetoric. Looking forward, market players will take cues from Jerome Powell’s speech later in the session. Further hawkish comments could boost the US Dollar and act as a tailwind for the greenback.
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