17/11/2025
Sterling trades cautiously as softer inflation data fuels BoE rate cut expectations. The Euro remains subdued amid trade tensions and political uncertainty. The US Dollar is supported by safe-haven flows and anticipation of Friday’s CPI release.
The Office for National Statistics (ONS) reported that annual inflation, as measured by the change in the Consumer Price Index (CPI), held steady at 3.8% in September, below the market forecast of 4%, which has weakened Pound Sterling (GBP).
Hopes for a trade deal were boosted after US President Donald Trump stated on Monday that he expects a “very strong deal” with China, confirming a meeting with Chinese President Xi Jinping next week in South Korea.
Major currency pairs remain relatively calm on Monday following the previous week’s volatile action, although the Euro is under moderate pressure following the downgrade of France’s sovereign credit rating.
US Dollar (USD) continues its extended slide, pressured by a combination of factors: fears of a full-blown Sino-US trade war, a prolonged US government shutdown, and growing expectations that the Federal Reserve (Fed) may be forced to accelerate its easing cycle.
The US Dollar (USD) continues to weaken against its major rivals, pressured by the uncertainty surrounding the US-China trade relations and a prolonged US government shutdown, which is stretching into a third week.