01/10/2025
Friday’s trading activity mirrored that of Thursday, with the USD extending its gains and the GBP weakening across all fronts.
The British Pound (GBP) experienced a widespread decline following the Bank of England meeting, where two of the more hawkish members withdrew their calls for further rate hikes.
Trading remained stagnant yesterday as markets braced for the Fed meeting later in the day.
Early gains in the USD dissipated towards the close of European trading as markets adjusted their positions ahead of tonight’s Federal Reserve meeting, particularly focusing on the Fed’s dot plot.
The US dollar strengthened in the afternoon as the probability of a rate cut in June decreased to 50%. Goldman Sachs revised their forecasts from four rate cuts to three, influenced by recent inflation data.
Friday didn’t bring much excitement, but the USD managed to close higher for the first time in three weeks leading up to this week’s Fed meeting.