03/10/2025
Central bank decisions are at the forefront of market activity, with significant attention on the ECB and SNB rate cuts, as well as the Fed’s anticipated policy shift.
The week’s major events—US CPI data and the ECB’s policy decision—are set to drive market volatility across major currency pairs.
The Pound remains supported against both the Euro and the Dollar amid stable BoE policy expectations, while the Euro and Aussie face challenges from dovish central bank tones.
The currency market remains cautious ahead of several critical events this week, including the ECB’s policy meeting and US inflation data. While the US Dollar holds firm amid strong economic data, expectations of rate cuts in both the US and Eurozone are creating mixed signals.
This week, the US Dollar corrected steadily as markets priced in a December rate cut, while European and UK currencies showed resilience.
GBP continues to benefit from relative strength against the Euro, while the USD shows weakness amid increasing expectations of a Fed rate cut. However, risks remain elevated due to political instability in the Eurozone and ongoing trade and tariff concerns globally.