Posts Tagged ‘FED’
Market Update: Sterling Pressured as Stronger Dollar and UK Political Uncertainty Drive FX Markets
Currency markets have moved sharply over the past 24 hours, with the US Dollar gaining ground and the Pound coming under pressure against the Dollar. The main driver has been a shift in interest rate expectations. Stronger US economic data has increased market expectations that the Federal Reserve may need to raise interest rates again…
Read MoreSterling Tests Key Levels as Global Tensions and Inflation Fears Drive Currency Markets
Markets returned from the UK bank holiday with currency moves still being heavily influenced by three key themes: Middle East tensions, oil prices, and shifting interest rate expectations. The Pound has been trying to push higher against the Euro, but it is once again running into an important resistance area near 1.16. Against the US…
Read MoreMarkets Start the Week Cautiously as UK Politics, Middle East Tensions and Inflation Risks Drive FX Moves
GBP – Political uncertainty keeps Sterling under pressure The Pound started the week slightly weaker, particularly against the Euro, as markets reacted to fresh political uncertainty in the UK. Labour’s poor local election results have increased pressure on Prime Minister Keir Starmer, with growing speculation around his leadership and the future direction of government policy.…
Read MoreCentral Banks Take Centre Stage as Inflation and Oil Risks Keep FX Markets on Edge
GBP – Pound under pressure ahead of Bank of England decision The Pound has started the week under some pressure against most major currencies, although it is holding slightly firmer against the US Dollar. The main focus for markets this week is the Bank of England interest rate decision on Thursday. Markets currently expect the…
Read MoreFX 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 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 MoreSterling Struggles, Euro Awaits CPI, Dollar Eyes Jobs Data
Interest Rate / Inflation Zone Interest Rate Inflation UK 4% 3.8% EU 2.15% 2% US 4.25% 2.9% Key Market Updates GBP Sterling remains under pressure, with markets watching the Labour Party conference for any signs of unfunded spending. Such signals could weigh on gilts and GBP. Focus will then turn to Bank of England speakers,…
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