03/10/2025
This week’s key events, including UK employment data, US inflation readings, and ongoing commentary from central bank officials, are expected to drive volatility across major currency pairs.
This week, currency markets remained volatile, influenced by central bank decisions and shifting economic forecasts. The Pound showed resilience against the Euro but struggled against the Dollar, while the Euro and Australian Dollar faced continued downside pressures.
Currency markets have been driven by a combination of central bank decisions, political uncertainty, and Trump’s re-election. While rate cuts are broadly anticipated, market attention will remain on the accompanying commentary to gauge future monetary policy paths.
Expectations of new tariffs and trade restrictions under Trump’s administration are driving concerns over economic growth for the Eurozone, UK, and Australia
As central bank decisions approach and the US presidential election takes centre stage, the currency market is set for heightened volatility.
In a pivotal week, currency markets face increased volatility amid key rate decisions from the BoE, Fed, and RBA, and the US presidential election. GBP is closely watched ahead of the BoE’s policy shift, while the USD’s direction will largely depend on election results and Fed guidance.