01/10/2025
The pound fell at the end of the week following remarks by BoE’s Ramsden indicating reduced concern about UK inflation compared to previous months, echoing Governor Bailey’s dovish comments earlier in the week.
Last night, tensions escalated in the Middle East following Israel’s strike on Iran.
Yesterday morning, UK CPI figures exceeded expectations, leading to speculation that rate cuts might be delayed until September.
Market movements remained relatively calm yesterday, with underlying geopolitical tensions persisting as Israel considers potential retaliation against recent strikes from Iran.
UK retail sales exceeded expectations in March, leading to a rise in US treasury yields to 4.64% and further gains for the USD, resulting in EURUSD hitting new 6-month lows.
The USD continued to gain ground on Friday amid a stock sell-off, fuelled by diminishing expectations of Fed rate cuts and a surge in risk aversion before the weekend.