Pound weakens as UK retail sales slump exceeds expectations

• The pound faced pressure from a larger-than-expected UK retail sales slump, leaving sterling vulnerable if October’s services PMI disappoints.
• The euro weakened as French bond yields exceeded 5%, reaching a 24-year high; analysts lowered growth expectations for 2026 and 2027.
• Surging oil prices lifted safe-haven demand for the US dollar, with an unexpected decline in initial jobless claims reinforcing gains.
• The Canadian dollar rose with oil prices, but an expected sharp slowdown in retail sales threatened further gains.
• New Zealand’s dollar strengthened as investors priced in a Reserve Bank of New Zealand rate hike next week despite underwhelming inflation.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Currencies Direct Ltd. published the original content used to generate this news brief on October 23, 2026, and is solely responsible for the information contained therein.