FX Markets Open 2026 with Volatility and a Firmer Dollar
FX Markets – Weekly Snapshot FX markets have started the year with increased volatility, driven by a firmer US Dollar and cautious risk sentiment. GBP Sterling has strengthened against the Euro, with GBP/EUR trading at its highest levels since October, helped by improved global risk appetite rather than UK-specific data. Against the Dollar, GBP/USD has…
Read MorePolicy Decisions and Data Releases Set to Drive Market Volatility
Interest Rates & Inflation Snapshot Region Interest Rate Inflation UK 4.00% 3.6% Eurozone 2.15% 2.2% United States 3.75% 3.0% Overview Markets head into a busy week dominated by central bank decisions and key economic data across the UK, Eurozone, and United States. In the UK, attention centres on the labour market, inflation, and the Bank…
Read MoreMarkets Poised Ahead of Crucial Fed Decision This Week
Last Week’s Market Overview The week began with U.S. ISM Manufacturing PMI for November coming in slightly weaker at 48.2 (vs. 48.6 expected and 48.7 previously). Markets then turned their focus to a speech from Fed Chair Powell on Tuesday. In the Eurozone, preliminary November inflation data showed a softer mix: The UK also awaited…
Read MoreUK Budget Adds to Sterling Headwinds; USD Volatile Ahead of Key Data
Key Macro This Week’s Economic Calendar (Key Releases / Events) Day / Region Key Data / Event Why It Matters Mon 1 Dec ISM Manufacturing PMI (US) + final manufacturing PMIs (EUR, UK, US) Insight into manufacturing activity, may influence Fed & ECB expectations, risk sentiment. Tue 2 Dec Eurozone CPI (flash), eurozone unemployment rate;…
Read MoreThe Budget Test: Will Sterling Sink or Stabilise?
Interest Rates & Inflation Snapshot Region Interest Rate Latest Inflation UK 4.00% 3.6% Eurozone 2.15% 2.1% US 4.00% 3.00% GBP – All Eyes on Thursday’s Budget Sterling starts the week steady, but markets are clearly nervous ahead of Chancellor Rachel Reeves’ first Budget on Thursday. The pound is still carrying a small risk premium, with…
Read MoreMarkets This Week: Inflation, Jobs and Policy Moves
Rates & Inflation Overview Region Interest Rate Inflation UK 4% 3.8% EU 2.15% 2.1% US 4% 3% Key Market Updates United Kingdom (GBP) Wednesday 12th – Consumer Price Index (07:00) Leading indicator of inflation. Market Impact:A further decline would typically weaken the GBP. The UK remains around 1.8% above the 2% inflation target. A rise…
Read MoreMomentum Returns to Markets as the Dollar Strengthens on Strong US Data
Last week began quietly, with limited economic data released on Monday and Tuesday. However, Manufacturing PMI in the United States continued to decline, recording a reading of 48.7. On Tuesday, President Lagarde announced that Bulgaria will adopt the Euro on 1 January 2026. Small and medium-sized Bulgarian enterprises are expected to save roughly one billion…
Read MoreSterling Softens Ahead of Fed and BoE Policy Decisions
GBP The Pound remains under pressure as markets continue to expect the Bank of England to start cutting interest rates in the coming months. GBP/USD is holding just above $1.33 but has lost momentum, reflecting softer UK data and caution ahead of the Autumn Budget. Markets now see around a 40% chance of a rate…
Read MoreInflation, Retail Data, and Rising Global Tensions
Interest Rates & Inflation Region Interest Rate Inflation 🇬🇧 UK 4.00% 3.8% 🇪🇺 EU 2.15% 2.2% 🇺🇸 US 4.25% 2.9% United Kingdom Wednesday 22nd – Consumer Price Index (CPI)What is it?The leading indicator of inflation in the UK.Previous: 3.8% Consensus: N/A (Core CPI expected to rise by 0.1%)📈 Market Impact: A higher reading would imply further distance…
Read MoreMarkets Eye Key Data and Central Bank Speeches as Volatility Rises
UK: GBP Drivers Data Points Expected This Week: Interest & Inflation Context: Higher inflation increases the likelihood of future rate hikes, which is supportive for GBP. US: USD Drivers Data Points Expected This Week: Interest & Inflation Context: The combination of near term inflation readings and Powell’s speech will likely drive USD volatility this week.…
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