GBP: The British Pound fell to a new six-month low vs the Euro last week, and unless the UK PMI data beats the Eurozone’s, it could fall even lower. In the interim, the UK Autumn Statement will be released prior to Thursday’s data. If the government acts decisively to increase business investment and productivity despite the limited fiscal headroom available, this might also provide some support for the pound.

EUR: Though data from last week indicated that inflation was declining substantially, the Euro managed to hold onto its recent gains this morning. In actuality, annualised Eurozone inflation was confirmed to be 2.9%, which is a decrease from 4.3% in the previous month. Policymakers, however, are eager to refute the notion that the ECB would lower interest rates anytime soon, arguing that inflation is still over target. A number of central bankers are scheduled to speak today, and their remarks will be closely scrutinised for hints about potential future policy.

USD: This morning, the U.S. Dollar continued its downward trend that began last week, plunging to a two-month low. The shift occurs as investors, now focused on when the Federal Reserve would start reducing rates, reiterate their view that U.S. rates have peaked. The change in forecasts comes following a string of less positive than anticipated U.S. economic data, especially an unexpectedly low inflation rate.

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