03/10/2025
GBP has suffered significant losses following weak UK inflation data, fuelling expectations of a BoE rate cut.
The FX market is being driven by USD strength, as investors adjust their expectations for the Federal Reserve’s interest rate policy.
The overarching theme in the currency markets remains a preference for the US Dollar as geopolitical tensions and economic uncertainty persist.
This week has seen mixed results across the board, with Pound Sterling gaining some ground due to positive UK factory and GDP data but remaining subdued overall as traders look ahead to key employment and inflation reports.
Currency markets have been dominated by USD strength this week as traders anticipate key US inflation data.
US Dollar remains strong on safe-haven demand and reduced expectations of aggressive Fed rate cuts, while the Euro and Pound face pressures from expected rate cuts by their respective central banks.