03/10/2025
The currency market is showing considerable movement, with the Pound under strain from UK fiscal policies and borrowing concerns.
The UK’s new budget has implications for Sterling, as it may delay aggressive BoE rate cuts. Meanwhile, Eurozone economic resilience could bolster the Euro if inflation and growth data remain strong.
The UK Budget will likely play a key role in GBP performance, while the ECB’s outlook remains sensitive to European GDP and inflation data. USD is facing pressure from weak labour indicators, with the focus now shifting to US GDP and payroll updates
This week promises significant currency market movement, with the US Dollar’s trajectory hinging on a data-heavy calendar, the UK’s Autumn Budget, and potential shifts in ECB policy outlook.
Geopolitical factors and national economic policies, such as the UK’s Autumn Budget, will likely affect trading patterns, with Sterling particularly sensitive to both BoE rate expectations and UK fiscal policy announcements.
GBP maintains slight upward momentum but faces considerable risk from domestic fiscal policies. USD holds strong in the face of anticipated U.S. rate adjustments and election implications. EUR remains cautious, restrained by economic forecasts, while AUD remains susceptible to USD strength amid global economic fluctuations.