18/03/2026
The FX market remains dominated by anticipation of central bank actions, with the ECB expected to cut rates further, pressuring the Euro. Meanwhile, the Pound is weighed down by easing inflation in the UK and rising expectations of a rate cut from the Bank of England.
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.