• [gtranslate]

Market Insight 23-09-2025

  • Home
  • Market Insight 23-09-2025

Daily Market Update: 23 September 2025

Key Currency Pair Movements

GBP/EUR

  • Summary: Pound Sterling has softened against the Euro (EUR) amid rising UK fiscal worries. Public sector net borrowing hit £18 billion in September, which is the highest in five years.
  • Outlook: The rising debt burden and fiscal risks could exert further selling pressure on the GBP. Focus is now on preliminary PMI reports from the Eurozone and the UK later on Tuesday.

GBP/USD

  • Summary: Pound Sterling snapped a three-day losing streak on Monday and has stabilised above 1.3500.
  • Outlook: Focus is now on the UK’s PMI data for September. The Services PMI component is expected to backslide to 53.5 from 54.2, while the Manufacturing PMI is forecast to hold steady at 47.0.

EUR/USD

  • Summary: The Euro rose about 0.5% on Monday before entering a consolidation phase around 1.1800 on Tuesday. The Eurozone Consumer Confidence Index improved to -14.9 in September, which was better than the expected -15.3 and provided some support to the shared currency.
  • Outlook: Focus is now on preliminary PMI figures from the Eurozone. The HCOB Manufacturing PMI is expected to have improved to 50.9, while Services activity is seen expanding at a steady 50.5 pace. Escalating geopolitical tension in Russia could weigh on the EUR due to Europe’s close economic and energy ties with the country.

AUD/USD

  • Summary: The Australian Dollar (AUD) is under modest bearish pressure and trading below 0.6600. The Australian S&P Global Composite PMI dropped to its lowest level in three months, falling to 52.1 in September from 55.5 previously. Both manufacturing and services noted slowing growth amid weaker new business inflows and lower goods orders.
  • Outlook: The US Dollar holds ground today on cautious remarks from Fed officials, which is contributing to the AUD/USD depreciation. Traders will likely observe the preliminary US S&P Global PMI figures later in the day.

USD/CAD

  • Summary: The Canadian Dollar (CAD) is struggling, and the USD/CAD pair is at a fresh weekly high above 1.3830. The CAD, which is a commodity-linked currency, has weakened on declining oil prices. West Texas Intermediate (WTI) oil prices have extended their losses for the fifth consecutive session amid rising oversupply concerns.
  • Outlook: Traders will likely be observing the US S&P Global PMI reports for September later today. Bank of Canada (BoC) Governor Tiff Macklem will also be speaking later in the American session.

USD/CHF

  • Summary: The USD/CHF pair is demonstrating a subdued performance, trading cautiously around 0.7920.
  • Outlook: Investors are awaiting the speech from Federal Reserve (Fed) Chair Jerome Powell later to get cues about the pace of future interest rate cuts. The Swiss Franc (CHF) will also be influenced by the Swiss National Bank’s (SNB) monetary policy announcement on Thursday, where it is expected to hold interest rates steady at 0%.

Final Summary

The US Dollar is trading sideways today as traders await key PMI data from the Eurozone and the US, alongside a speech from Fed Chair Jerome Powell. Pound Sterling is facing headwinds against the Euro due to UK fiscal concerns but has stabilised against the US Dollar. The Canadian Dollar has weakened due to declining oil prices, while the Australian Dollar is under pressure following disappointing domestic PMI figures. The USD/CHF pair is also trading cautiously ahead of Powell’s speech and the Swiss National Bank’s upcoming policy announcement. The overall central bank narrative is split, with some Fed officials advocating for further rate cuts to support employment, while others remain cautious due to ongoing inflation risks.