09/01/2026
Currency markets remain cautious ahead of the US Nonfarm Payrolls report, with the Dollar struggling amid fiscal concerns and political pressure on the Fed. Sterling weakened on UK political instability and fiscal retreat, while the Euro held firm on policy stability.
Sterling eased from recent highs as investors awaited BoE commentary, and the Euro paused after hitting multi-year peaks.
The US Dollar continues to weaken amid political interference concerns, fiscal uncertainty, and growing expectations of Fed rate cuts.
As we head into July, markets will be focused on upcoming US inflation and employment data to reassess the likelihood of a Fed rate cut in September. Central bank communication, particularly from the BoE and ECB, will be closely monitored, alongside progress on global trade talks.
The US Dollar remains under pressure as markets price in a September Fed rate cut and digest political uncertainty.
Sterling holds firm on resilient PMI data, though BoE dovishness tempers gains.