27/10/2025
Sterling remains soft amid BoE rate cut expectations and fiscal concerns, while the Euro holds firm on fading ECB easing bets despite French political risks. The US Dollar trades cautiously ahead of Wednesday’s Fed decision, with softer inflation data reinforcing rate cut expectations.
Sterling remains soft despite upbeat retail data, as BoE rate cut expectations persist. The Euro finds support from stronger PMIs and improving consumer sentiment. The US Dollar holds firm ahead of CPI data, while trade tensions and the government shutdown add uncertainty.
Sterling trades cautiously as softer inflation data fuels BoE rate cut expectations. The Euro remains subdued amid trade tensions and political uncertainty. The US Dollar is supported by safe-haven flows and anticipation of Friday’s CPI release.
The Office for National Statistics (ONS) reported that annual inflation, as measured by the change in the Consumer Price Index (CPI), held steady at 3.8% in September, below the market forecast of 4%, which has weakened Pound Sterling (GBP).
Hopes for a trade deal were boosted after US President Donald Trump stated on Monday that he expects a “very strong deal” with China, confirming a meeting with Chinese President Xi Jinping next week in South Korea.
Major currency pairs remain relatively calm on Monday following the previous week’s volatile action, although the Euro is under moderate pressure following the downgrade of France’s sovereign credit rating.