08/12/2025
The US dollar surged to new highs after remarks from Fed Powell and better-than-expected ISM services data for January. The likelihood of a rate cut in March plummeted to 0.16%, causing a decline in equities. Despite upbeat UK services PMI figures, the British pound struggled amid overall market caution. GBPUSD breached key support levels, raising the prospect of revisiting November lows. Meanwhile, EURUSD revisited its December low before finding support.
Summary The US dollar experienced a significant surge on Friday, driven by a robust January jobs report. This development has reduced the anticipated number of rate cuts by the Federal Reserve for the year by 30 basis points, with March rate cut projections dropping to a 17% probability. GBPUSD hit the lower end of its
Summary The British Pound displayed minimal response to the recent decision by the Bank of England’s monetary policy committee, maintaining interest rates for the fourth consecutive meeting. The committee emphasized the need for additional evidence indicating a decline in inflation to the 2% target before considering a reduction in borrowing costs. Governor Bailey asserted the
Summary: Yesterday’s European trading session saw markets holding steady ahead of the US FOMC interest rate meeting at 7pm. Preliminary data, including German Retail Sales and US ADP employment, indicated lower figures than anticipated. As anticipated, the Fed maintained interest rates, prompting a strengthening of the US dollar. However, during the press conference, Chair Powell
Summary The currency markets showed limited movement yesterday as anticipation built ahead of the upcoming US interest rate meeting. The euro briefly declined following Q4 GDP data, revealing a narrow escape from technical recession for the EU with “growth at 0.0%.” The US dollar initially strengthened on robust job opening data but retraced gains as
Summary In the recent trading session, the currency markets maintained a narrow range, with participants anticipating upcoming economic data. The absence of significant releases led the dollar to closely align with overall market sentiment. A positive shift occurred late in the US session when the Treasury announced reduced borrowing needs for Q1 2024, driving US