Pound (GBP) falls as UK budget looms
The pound (GBP) slipped against its stronger peers yesterday as GBP investors remained cautious ahead of the Autumn Budget.
In addition, a new report revealed that the number of UK businesses in ‘significant’ financial distress hit a record high in the third quarter of 2026, raising concerns about the health of the UK economy.
With the budget being unveiled today, Sterling could face heightened volatility as markets digest the government’s fiscal plans. If markets respond positively to the policies announced, the pound could tick higher overall.
Euro (EUR) slips amid ongoing anxiety in France
The euro (EUR) weakened on Tuesday as markets remained concerned about the political instability and fiscal crisis in France, the Eurozone’s second-largest economy.
Meanwhile, a lack of fresh Eurozone data left the single currency unsupported.
A modest deterioration in German consumer confidence could pressure the euro today, although movement may be limited ahead of the European Central Bank’s (ECB) policy decision tomorrow.
US dollar (USD) ticks higher despite cheery mood
The US dollar (USD) firmed yesterday, with the safe-haven currency attracting demand despite an improving market mood.
USD’s upside came as AI stocks settled and US durable goods orders outpaced expectations in September.
Turning to today, the US dollar could face muted movement ahead of the Federal Reserve’s interest rate decision tonight. While the Fed is set to leave rates unchanged, hawkish forward guidance could lift USD.
Canadian dollar (CAD) undermined by easing oil prices
The crude-linked Canadian dollar (CAD) slipped against its stronger peers yesterday amid a decline in global oil prices, although CAD showed resilience against some of its rivals.
Looking forward, the Bank of Canada (BoC) is expected to raise interest rates by 25 basis points later today, which could lend CAD support.
Australian dollar (AUD) firms amid elevated inflation
The Australian dollar (AUD) rose overnight as the latest Australian inflation data came out while Reserve Bank of Australia (RBA) policymakers gave evidence in a Senate hearing, with RBA Deputy Governor Andrew Hauser commenting that the figures were ‘too high’.
New Zealand dollar (NZD) nosedives on surprise RBNZ hold
The New Zealand dollar (NZD) plummeted overnight after the Reserve Bank of New Zealand (RBNZ) wrong-footed markets by leaving interest rates unchanged.
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