01/10/2025
The UK budget failed to boost the GBP’s performance against the G10 currencies. However, GBPUSD showed resilience, trading back towards 2024 highs despite disappointing US job numbers.
The ISM services data released in the afternoon indicated a continued growth in the sector, albeit below expectations, with concerns emerging over job cuts.
Fed Bostic’s recent statements indicate a projected rate cut in the third quarter of this year, followed by a pause to assess its economic impact.
Currency movements were mixed on Friday due to conflicting statements from Fed speakers and varied manufacturing PMI data.
US Core PCE inflation was in line with expectations, indicating higher inflation in January. Stronger personal spending and income led to broad USD gains, resulting in GBPUSD and EURUSD finishing the week lower.
USD gains reversed after mixed US data. Equities recovered, weakening USD. Focus remains on upcoming US inflation data. GBPUSD in tight range.