USD Rebounds, EUR Holds Range, GBP Slips on UK Growth Concerns.

• USD – Dollar Edges Higher Ahead of Key Labour Market Signals

• EUR – Euro Holds Ground but Lacks Direction After Mixed Data
  

• GBP – Sterling Softens as UK Growth Concerns Linger

USD:

The U.S. dollar is trading with a mildly firmer bias this morning as markets position ahead of a dense week of U.S. labour data, including JOLTS job openings and the November non-farm payrolls report. After drifting lower through late November, USD has found some support as traders reassess whether the Federal Reserve will move as quickly toward easing as previously priced. While expectations for early-2026 rate cuts remain in place, any resilience in labour-market indicators could temper those bets and give the dollar additional short-term lift. For now, markets remain cautious, with the dollar holding within familiar ranges but showing signs of stabilisation as investors await macro confirmation.

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EUR: 

The euro continues to trade steadily, though momentum remains limited following yesterday’s mixed euro-area PMI figures. While the bloc’s manufacturing data showed slight improvement, underlying demand indicators remain uneven, preventing EUR from building a stronger upward push. The ongoing compression in U.S.–eurozone rate differentials continues to support the single currency, helping it resist downside pressure even in quieter trading conditions. With no major euro-area releases scheduled today, EUR/USD is likely to remain driven by broader dollar moves and risk sentiment. The euro retains a slight upward bias, but a breakout still requires firmer regional data or a more decisive shift in U.S. yields.

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GBP: 

Sterling is slightly weaker this morning as markets continue to digest the implications of the UK’s Autumn Budget alongside recent signs of softening domestic activity. Yesterday’s UK manufacturing PMI confirmed ongoing contraction in the sector, reinforcing concerns about the UK’s near-term growth outlook and limiting upside for GBP. Investors remain focused on how these dynamics might shape the Bank of England’s early-2026 policy stance, with some now questioning whether rate-cut expectations may need to be brought forward. GBP/USD is drifting lower in early trading, while EUR/GBP maintains a modest upward bias as euro stability contrasts with the UK’s more uncertain backdrop. Without supportive domestic data, sterling may continue to trade defensively through the week.

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