06/02/2025
Summary:
GBPUSD reached a new one-year high after inflation numbers surpassed expectations this morning. However, the GBP generally did not maintain these gains by the end of the day, likely due to caution ahead of today’s job numbers.
The USD weakened broadly, partly due to renewed rumours that the Bank of Japan might intervene in the currency markets due to the weak JPY. Additionally, Fed member Waller suggested in the afternoon that the Fed’s next move would likely be a rate cut.
Speeches:
Market Insight:
UK job numbers slowed as anticipated this morning, with average weekly earnings excluding bonuses falling to 5.7%. The unemployment rate remained unchanged at 4.4%. Consequently, the GBP remains steady, and we might see the currency’s momentum wane as the week progresses, considering the recent data points.
The ECB is not expected to announce a rate cut today, but we will be paying close attention to any indications that a rate cut might occur in September.