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Foreign Exchange

Economic Update 11 Aug 2025 6 minute read
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Sterling gains, euro pauses, dollar eyes CPI

Sterling edged higher last week following the Bank of England’s (BoE) decision to cut interest rates to 4.00% - the lowest level in over two years. The move was finely balanced, with five Monetary Policy Committee...

Economic Update 04 Aug 2025 5 minute read
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Sterling stumbles as central banks face a balancing act

Sterling enters the week under pressure, not just from external forces but from a growing internal dilemma. The Bank of England faces a difficult decision when it meets this Thursday. Inflation is currently running at a...

Economic Update 28 Jul 2025 6 minute read
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Global markets look out for signals from trade talks and central banks

The pound has started the week on a firmer footing, buoyed by improving market confidence following the US-EU trade deal. Investors seem to be showing more appetite for risk, which has supported GBP against both the dollar and the euro.

Economic Update 21 Jul 2025 7 minute read
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Bank of England may pause bond sales to calm markets after gilt turbulence

The Bank of England is facing renewed scrutiny over its quantitative tightening strategy, as recent volatility in the gilt market has exposed fragilities in demand for long-dated UK government debt.

Economic Update 14 Jul 2025 5 minute read
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Markets eye US CPI, but Trade Policy may steal the spotlight

The UK remains caught between persistent inflation and a cooling labour market. May’s CPI rose to 3.4%, with the Bank of England expecting a peak of 3.5% in...

Economic Update 07 Jul 2025 6 minute read
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Pound's gains undone by UK political turbulence

Sterling extended its rally last week, with GBP/USD climbing to near four-year highs, largely on the back of broad-based dollar weakness. However, the pound’s ascent...

Economic Update 23 Jun 2025 6 minute read
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Bank of England holds steady but rate cut expectations rise - Markets eye a possible pivot in August

The Bank of England held rates at 4.25% as expected Thursday, although the vote split showed a slightly more dovish outcome than forecasted, with three members voting for a rate cut...

Economic Update 09 Jun 2025 7 minute read
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Sterling holds ground near 4-year high as dollar weakens

This week has the potential to see as much volatility as last week when the pound continued its positive trajectory against many of the G10 currencies.

Economic Update 02 Jun 2025 6 minute read
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Euro holds ground as market brace for European Central Bank's (ECB) rate decision

With no major UK economic data scheduled this week, sterling is likely to take its cues from international developments as well as the ongoing global impacts of trade tariffs and...