14/11/2025
Written by: Ian Morley
Daily Currency Market Update – 7th November 2025
GBP/EUR
Summary: GBP/EUR posted modest losses following the BoE’s dovish hold. The Bank left rates unchanged at 4.0%, but four MPC members voted for a cut, and Governor Bailey signalled that easing could follow if disinflation persists. Sterling remains under pressure ahead of the Autumn Budget, while the Euro is supported by cautious ECB commentary and reduced expectations for further rate cuts.
Outlook: GBP/EUR may remain soft unless UK fiscal risks ease. ECB speeches and Eurozone sentiment will guide direction.
GBP/USD
Summary: GBP/USD edged lower to 1.3120 after rising 1% over two sessions. The BoE’s dovish tone weighed on Sterling, while the Dollar found support from Challenger job cuts data and cautious Fed commentary. Traders await US consumer sentiment data amid ongoing government shutdown.
Outlook: GBP/USD may remain rangebound unless Fed speakers shift tone. UK budget speculation and US data will shape momentum.
EUR/USD
Summary: EUR/USD eased to 1.1535, trimming Thursday’s gains as risk aversion supported the Dollar. Mixed Eurozone data and a narrowing German trade surplus added headwinds, while the US data blackout continues to limit visibility.
Outlook: Euro may remain capped unless sentiment improves. ECB commentary and US consumer sentiment will be pivotal.
AUD/USD
Summary: AUD/USD struggled near 0.6500 as China’s trade data disappointed. Exports and imports slowed, while the US Dollar regained ground on Fed rate cut speculation and risk aversion. Tariff relief and trade surplus support remain in play.
Outlook: AUD may stabilise if China-US trade tensions ease. Domestic data and global sentiment will guide direction.
USD/CAD
Summary: USD/CAD held near 1.4120, close to six-month highs, supported by Dollar strength and soft Canadian PMI. Traders await Canadian employment data and BoC commentary, while the US shutdown continues to cloud visibility.
Outlook: CAD may gain if labour data surprises. Oil prices and Fed tone will influence direction.
USD/CHF
Summary: USD/CHF rose to 0.8075, supported by renewed Dollar demand and Fed commentary. SNB remarks reinforced inflation resilience, while safe-haven flows remain balanced amid global uncertainty.
Outlook: USD/CHF may remain firm unless Fed signals dovish shift. SNB tone and risk sentiment will shape CHF direction.
Final Summary
Sterling softened after the BoE’s dovish hold, while the Euro held ground amid cautious ECB signals. The US Dollar stabilised on job cut data and Fed commentary, with consumer sentiment in focus. The Australian Dollar faced pressure from weak Chinese trade figures, while the Canadian Dollar steadied ahead of key labour data. The Swiss Franc traded mixed as inflation resilience offset safe-haven demand.