Spectrum Daily Report

GBP: The British Pound rallied to new yearly highs against the U.S. Dollar and the Euro following yesterday’s comments from BoE Governor Andrew Bailey. Bailey suggested that UK interest rates will fall ‘gradually’ reinforcing expectations the BoE will be less aggressive than its peers in unwinding its monetary policy. Looking forward, with UK economic data thin on the ground today, the pound may struggle to find direction.

EUR: The Euro lost further ground after Eurozone PMI sank to 48.9 this month from August's 51.0, below the 50 mark that separates growth from contraction for the first time since February. The downturn appeared broad-based with Germany, Europe's largest economy, seeing its decline deepen while France, the bloc’s second biggest - returned to contraction following August's Olympics boost.

USD: The U.S. Dollar stumbled yesterday as the launch of new stimulus measures by China stoked market risk appetite and limited demand for safe-haven assets. This downturn in USD was then reinforced as the latest U.S. consumer confidence index reported its largest decline in over three years. U.S. data is in short supply today, potentially leaving the Dollar vulnerable to further losses if market sentiment remains positive.

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