19/11/2025
Currency markets have been driven by a combination of central bank decisions, political uncertainty, and Trump’s re-election. While rate cuts are broadly anticipated, market attention will remain on the accompanying commentary to gauge future monetary policy paths.
Expectations of new tariffs and trade restrictions under Trump’s administration are driving concerns over economic growth for the Eurozone, UK, and Australia
As central bank decisions approach and the US presidential election takes centre stage, the currency market is set for heightened volatility.
In a pivotal week, currency markets face increased volatility amid key rate decisions from the BoE, Fed, and RBA, and the US presidential election. GBP is closely watched ahead of the BoE’s policy shift, while the USD’s direction will largely depend on election results and Fed guidance.
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.