

Market Analysis
The EUR/GBP currency pair has ended its four-day decline, trading around 0.8330 during European trading hours on Tuesday. This rebound can be linked to dovish remarks made by Bank of England (BoE) Governor Andrew Bailey.
Governor Bailey stated, “I’m very encouraged that the path of inflation is downward, so I believe interest rates will also trend downward, albeit gradually.” He further mentioned, “My best guess is that interest rates will settle at a 'neutral rate.'”
UK Prime Minister Keir Starmer is expected to address a "shared struggle" for the nation in his first speech at the Labour Party conference, while also highlighting that there is "light at the end of the tunnel." He will assert that "difficult" decisions must be made now to "build a new Britain," according to the BBC.
On the economic front, Germany's IFO Business Climate Index fell to 85.4 in September, down from 86.6 in August, missing market expectations of 86.0. The Current Economic Assessment Index also decreased to 84.4, below the forecasted 86.1 and compared to 86.4 in the previous month. Additionally, the IFO Expectations Index, which gauges firms' outlook for the next six months, dropped to 86.3 in September, aligning with expectations, down from 86.8 in August.
Recent flash data from the HCOB Purchasing Managers Index (PMI) for September, covering the Eurozone and Germany, has increased market speculation that the European Central Bank (ECB) may consider a second consecutive interest rate cut at its upcoming meeting in October.
Paraphrasing text from "FX Street" all rights reserved by the original author.