Dollar Risk Dominates as Sterling and Euro Hold Firm

GBP The Pound started the week on a strong note, trading near recent highs against the US Dollar. The move follows a run of UK economic data that came in better than expected, helping improve confidence around the domestic outlook. UK Retail Sales rose by 0.4% month-on-month, rebounding from the previous decline and surprising markets…

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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…

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Policy 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…

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Markets 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…

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The 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…

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Markets 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…

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Momentum 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…

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