17/11/2025
Heading into August, focus is now on the Fed’s next steps, BoE policy direction, and ECB inflation commentary
Sterling remains under pressure amid expectations of BoE easing, while the Euro finds support from stronger GDP but faces inflation risks. The US Dollar paused its rally after robust data and a hawkish Fed tone, with the market now focused on PCE inflation and Nonfarm Payrolls.
Currency markets are cautious ahead of today’s Fed and BoC rate decisions, with no changes expected but policy tone in focus.
Sterling rebounded sharply against the Euro but remains soft versus the Dollar, as UK economic concerns persist. The Euro weakened on trade deal fallout, while the Dollar held firm ahead of Wednesday’s Fed decision.
Markets opened the week on a risk-positive note following confirmation of a US–EU trade deal, lifting the Dollar and easing global uncertainty.
Sterling weakened on softer-than-expected Retail Sales, while the Euro held steady following the ECB’s cautious policy hold.