Currency news / December 5, 2025

Political instability to topple EUR?

3 min read Thanim Islam

Thanim IslamDecember 5, 2025

Market snapshot:

Pension bill could topple coalition

Yesterday's currency recap

More USD weakness yesterday after Revelio Labs revealed the US lost 9,000 nonfarm jobs in November ,with the October reading revised even lower to losses of 15,500 from 9,100. GBPUSD hit the October 28th highs as a result.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	-0.10%	2.0208
GBPCAD	0.10%	1.8642
GBPCHF	0.30%	1.0710
GBPDKK	0.20%	8.5625
GBPEUR	0.20%	1.1464
GBPJPY	-0.17%	206.981
GBPNOK	0.33%	13.4769
GBPNZD	0.14%	2.3163
GBPSEK	0.45%	12.5694
GBPUSD	0.16%	1.3375

*Daily move - against G10 rates as of 06:00 GMT, 05.12.25
** Indicative rates - interbank rates as of 06:00 GMT, 05.12.25

Key data points

Currency	Event	Period	Consensus	Previous
USD	Core PCE MoM	Sep	0.20%	0.20%
USD	Core PCE YoY	Sep	2.80%	2.90%
EUR	GDP QoQ	3Q Third	0.20%	0.20%
EUR	GDP YoY	3Q Third	1.40%	1.40%

What we think

Core PCE numbers are out in the afternoon, but impact could be muted given the numbers are from September – so we will need to see a big deviation to have a meaningful impact on USD.

Also on the agenda today are final GDP numbers from the Eurozone. Germany’s lower house is set to vote on a pension bill that could topple Chancellor Merz’s coalition with the SPD, should the vote fail. This could potentially trigger new elections and cause political instability.

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