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EUR/USD edges higher as US shutdown concerns pressure the Dollar
The EUR/USD pair rose more than 0.20% on Monday, supported by renewed concerns about a potential US government shutdown. Despite improved sentiment data in the Eurozone, the common currency’s advance remained modest. At the time of writing, the pair trades near 1.1726, after touching a daily low of 1.1701.
Dollar weakens amid political deadlock in Washington
The US Dollar slipped against most G10 currencies as political uncertainty in Washington weighed on investor sentiment. President Donald Trump met with Democratic leaders from both the House and Senate, but the discussions revealed deep divisions.
Senate Democratic leader Chuck Schumer said, “We have large differences,” while House Democratic leader Hakeem Jeffries stressed that his party would not support a partisan Republican bill that threatens healthcare. Meanwhile, Vice President J.D. Vance told Bloomberg that the US is heading toward a shutdown following stalled talks.
Fed comments mixed; US housing data supports outlook
Earlier in the session, US housing data surprised to the upside, with Pending Home Sales jumping 4% in August, far above the 0.3% expected, and reversing July’s slight decline.
Federal Reserve officials, however, struck mixed tones:
St. Louis Fed President Alberto Musalem described inflation expectations as “somewhat high,” while noting labor market weakness.
Cleveland Fed President Beth Hammack maintained that inflation remains too high and continues on the wrong path.
New York Fed President John Williams highlighted that policy is restrictive but still effective in easing inflationary pressures, while acknowledging gradual labor market softening.
Eurozone sentiment improves but stays subdued
In Europe, September data showed Consumer Confidence rising slightly to -14.9 from -15.5, though still below long-term averages. Industrial Confidence eased to -10.3 but beat forecasts, while Services Sentiment slipped to 3.6, missing expectations.
Key events ahead
Markets now shift focus to this week’s upcoming data releases, including:
ADP Employment Report
ISM Manufacturing PMI
Initial Jobless Claims
September Nonfarm Payrolls
Fed fund futures currently show an 89% chance of a 25-bps rate cut in October, with just an 11% probability of a larger 50-bps move.
Technical outlook: EUR/USD steady near 1.1740
The pair has logged two consecutive bullish sessions, hovering around the 20-day Simple Moving Average at 1.1740. The Relative Strength Index (RSI) remains neutral, hinting at possible consolidation.
A break above 1.1740 could open the way to 1.1800, followed by the yearly high at 1.1918.
On the downside, a drop below 1.1700 may expose 1.1650, with the next key support at the 100-day SMA near 1.1599.
The EUR/USD pair rose more than 0.20% on Monday, supported by renewed concerns about a potential US government shutdown. Despite improved sentiment data in the Eurozone, the common currency’s advance remained modest. At the time of writing, the pair trades near 1.1726, after touching a daily low of 1.1701.
Dollar weakens amid political deadlock in Washington
The US Dollar slipped against most G10 currencies as political uncertainty in Washington weighed on investor sentiment. President Donald Trump met with Democratic leaders from both the House and Senate, but the discussions revealed deep divisions.
Senate Democratic leader Chuck Schumer said, “We have large differences,” while House Democratic leader Hakeem Jeffries stressed that his party would not support a partisan Republican bill that threatens healthcare. Meanwhile, Vice President J.D. Vance told Bloomberg that the US is heading toward a shutdown following stalled talks.
Fed comments mixed; US housing data supports outlook
Earlier in the session, US housing data surprised to the upside, with Pending Home Sales jumping 4% in August, far above the 0.3% expected, and reversing July’s slight decline.
Federal Reserve officials, however, struck mixed tones:
St. Louis Fed President Alberto Musalem described inflation expectations as “somewhat high,” while noting labor market weakness.
Cleveland Fed President Beth Hammack maintained that inflation remains too high and continues on the wrong path.
New York Fed President John Williams highlighted that policy is restrictive but still effective in easing inflationary pressures, while acknowledging gradual labor market softening.
Eurozone sentiment improves but stays subdued
In Europe, September data showed Consumer Confidence rising slightly to -14.9 from -15.5, though still below long-term averages. Industrial Confidence eased to -10.3 but beat forecasts, while Services Sentiment slipped to 3.6, missing expectations.
Key events ahead
Markets now shift focus to this week’s upcoming data releases, including:
ADP Employment Report
ISM Manufacturing PMI
Initial Jobless Claims
September Nonfarm Payrolls
Fed fund futures currently show an 89% chance of a 25-bps rate cut in October, with just an 11% probability of a larger 50-bps move.
Technical outlook: EUR/USD steady near 1.1740
The pair has logged two consecutive bullish sessions, hovering around the 20-day Simple Moving Average at 1.1740. The Relative Strength Index (RSI) remains neutral, hinting at possible consolidation.
A break above 1.1740 could open the way to 1.1800, followed by the yearly high at 1.1918.
On the downside, a drop below 1.1700 may expose 1.1650, with the next key support at the 100-day SMA near 1.1599.
xtrememarkets
Member
GBP/USD Advances Above 1.3450 Amid Rising Fed Rate Cut Expectations
GBP/USD extends its rally for the fourth straight session, trading near 1.3460 during Wednesday’s Asian session. The pair remains supported as the US Dollar (USD) weakens on the back of soft labor market data, which has heightened expectations of Federal Reserve (Fed) rate cuts. According to the CME FedWatch Tool, markets are now pricing in a 97% chance of a rate cut in October and a 76% probability of another reduction in December.
US Job Openings data signaled further cooling in the labor market, with vacancies edging up slightly to 7.23 million in August from 7.21 million, while the hiring rate slipped to 3.2%—its lowest since June 2024. Layoffs, however, remained subdued. Traders now turn their focus to September’s ADP Employment Change and ISM Manufacturing PMI, though releases may be disrupted by the ongoing US government shutdown.
The shutdown, which has left around 750,000 federal employees furloughed, came after Congress failed to pass funding bills. The US Labor Department confirmed that its statistics agency will suspend key data releases, including Friday’s nonfarm payrolls report, if the shutdown continues.
Meanwhile, the Pound Sterling (GBP) found support from stronger-than-expected UK GDP figures. Data released Tuesday showed that the UK economy expanded by 1.4% year-on-year in Q2, beating the earlier estimate of 1.2%. Quarter-on-quarter growth was confirmed at 0.3%, in line with initial projections.
Still, Sterling’s upside could be capped after Bank of England (BoE) Deputy Governor Dave Ramsden signaled support for a potential rate cut, citing growing concerns in the labor market. He added that inflationary pressures are likely to ease further, suggesting current policy settings remain restrictive.
GBP/USD extends its rally for the fourth straight session, trading near 1.3460 during Wednesday’s Asian session. The pair remains supported as the US Dollar (USD) weakens on the back of soft labor market data, which has heightened expectations of Federal Reserve (Fed) rate cuts. According to the CME FedWatch Tool, markets are now pricing in a 97% chance of a rate cut in October and a 76% probability of another reduction in December.
US Job Openings data signaled further cooling in the labor market, with vacancies edging up slightly to 7.23 million in August from 7.21 million, while the hiring rate slipped to 3.2%—its lowest since June 2024. Layoffs, however, remained subdued. Traders now turn their focus to September’s ADP Employment Change and ISM Manufacturing PMI, though releases may be disrupted by the ongoing US government shutdown.
The shutdown, which has left around 750,000 federal employees furloughed, came after Congress failed to pass funding bills. The US Labor Department confirmed that its statistics agency will suspend key data releases, including Friday’s nonfarm payrolls report, if the shutdown continues.
Meanwhile, the Pound Sterling (GBP) found support from stronger-than-expected UK GDP figures. Data released Tuesday showed that the UK economy expanded by 1.4% year-on-year in Q2, beating the earlier estimate of 1.2%. Quarter-on-quarter growth was confirmed at 0.3%, in line with initial projections.
Still, Sterling’s upside could be capped after Bank of England (BoE) Deputy Governor Dave Ramsden signaled support for a potential rate cut, citing growing concerns in the labor market. He added that inflationary pressures are likely to ease further, suggesting current policy settings remain restrictive.
xtrememarkets
Member
GBP/USD extends gains above 1.3430 as US shutdown weighs on Dollar
The GBP/USD pair advances modestly to around 1.3435 during Friday’s Asian session, supported by weakness in the US Dollar (USD). The Greenback comes under pressure as signs of a slowing US labor market emerge and the federal government enters a shutdown. Notably, the September Nonfarm Payrolls (NFP) report will not be released due to the shutdown, though the ISM Services PMI and final S&P Global Services PMI remain on schedule for later in the day.
Expectations of a softer US job market reinforce the case for additional Federal Reserve (Fed) rate cuts this year. The CME FedWatch tool shows markets have nearly fully priced in a 25 basis point cut at the upcoming policy meeting, which would bring rates to the 3.75%–4.00% range.
Meanwhile, the political standoff over government funding looks set to drag on. Senate Democrats are likely to block the GOP-backed short-term funding bill again in tomorrow’s vote, with no weekend session planned. Uncertainty surrounding the shutdown adds further downside pressure on the USD and lends support to the major pair.
On the UK side, Bank of England (BoE) officials continue to deliver mixed policy signals. Deputy Governor Sarah Breeden warned of risks tied to “higher for longer” rates, suggesting that the recent uptick in headline inflation may not persist and cautioning about potential damage from prolonged tight policy. Earlier this week, Deputy Governor Clare Lombardelli stressed the need for caution in assuming inflation shocks are only temporary. These conflicting messages could limit the Pound’s upside and cap further gains against the Dollar.
The GBP/USD pair advances modestly to around 1.3435 during Friday’s Asian session, supported by weakness in the US Dollar (USD). The Greenback comes under pressure as signs of a slowing US labor market emerge and the federal government enters a shutdown. Notably, the September Nonfarm Payrolls (NFP) report will not be released due to the shutdown, though the ISM Services PMI and final S&P Global Services PMI remain on schedule for later in the day.
Expectations of a softer US job market reinforce the case for additional Federal Reserve (Fed) rate cuts this year. The CME FedWatch tool shows markets have nearly fully priced in a 25 basis point cut at the upcoming policy meeting, which would bring rates to the 3.75%–4.00% range.
Meanwhile, the political standoff over government funding looks set to drag on. Senate Democrats are likely to block the GOP-backed short-term funding bill again in tomorrow’s vote, with no weekend session planned. Uncertainty surrounding the shutdown adds further downside pressure on the USD and lends support to the major pair.
On the UK side, Bank of England (BoE) officials continue to deliver mixed policy signals. Deputy Governor Sarah Breeden warned of risks tied to “higher for longer” rates, suggesting that the recent uptick in headline inflation may not persist and cautioning about potential damage from prolonged tight policy. Earlier this week, Deputy Governor Clare Lombardelli stressed the need for caution in assuming inflation shocks are only temporary. These conflicting messages could limit the Pound’s upside and cap further gains against the Dollar.
xtrememarkets
Member
Australian Dollar Falls Due to Weak Housing Data and Strong US Dollar
Following weak housing data, the Australian dollar (AUD) continued to decline against the US dollar (USD) on Wednesday, continuing its losses for the second straight session. The AUD/USD pair declined as investor sentiment intensified, with the S&P/ASX 200 index edging down 0.14% to trade below 8,950. It occurred due to declines in technology and gold stocks.
New data showed that Australia’s housing sector is slowing down. In August, private house approvals fell by 2.6%, after a slight rise the month before. Building permits also dropped by 6%, marking the second consecutive month of decline, and these weak data statistics have raised concerns about the economy and added pressure on the Australian dollar.
Even so, the Australian dollar received some support from the Reserve Bank of Australia (RBA), which remains cautious. The bank maintained its main interest rate at 3.6%, citing that inflation remains high and the job market remains strong. Policymakers don’t want to cut rates too early while prices for services stay above target.
Globally, the US Dollar Index reached 98.80, marking its third consecutive day of gains for forex traders who showed trust in it. The dollar remained strong, despite many traders expecting the Federal Reserve to cut rates later this year. Traders are becoming increasingly anxious due to the ongoing discussions about a potential US government shutdown, the Fed’s conflicting responses, and the delays in the publication of economic data.
On the charts, the AUD/USD pair is trading near 0.6570, still inside an upward channel but increasingly showing signs of weakness. It is suspected that if it falls below 0.6560, the Aussie could drop further. For now, soft housing data and a firm US dollar are keeping consistent pressure on the Australian currency.
Following weak housing data, the Australian dollar (AUD) continued to decline against the US dollar (USD) on Wednesday, continuing its losses for the second straight session. The AUD/USD pair declined as investor sentiment intensified, with the S&P/ASX 200 index edging down 0.14% to trade below 8,950. It occurred due to declines in technology and gold stocks.
New data showed that Australia’s housing sector is slowing down. In August, private house approvals fell by 2.6%, after a slight rise the month before. Building permits also dropped by 6%, marking the second consecutive month of decline, and these weak data statistics have raised concerns about the economy and added pressure on the Australian dollar.
Even so, the Australian dollar received some support from the Reserve Bank of Australia (RBA), which remains cautious. The bank maintained its main interest rate at 3.6%, citing that inflation remains high and the job market remains strong. Policymakers don’t want to cut rates too early while prices for services stay above target.
Globally, the US Dollar Index reached 98.80, marking its third consecutive day of gains for forex traders who showed trust in it. The dollar remained strong, despite many traders expecting the Federal Reserve to cut rates later this year. Traders are becoming increasingly anxious due to the ongoing discussions about a potential US government shutdown, the Fed’s conflicting responses, and the delays in the publication of economic data.
On the charts, the AUD/USD pair is trading near 0.6570, still inside an upward channel but increasingly showing signs of weakness. It is suspected that if it falls below 0.6560, the Aussie could drop further. For now, soft housing data and a firm US dollar are keeping consistent pressure on the Australian currency.
xtrememarkets
Member
EUR/USD Strengthens Above 1.1600 as Fed Signals Possible Rate Cuts
The EUR/USD pair climbed to around 1.1620 during Wednesday’s Asian session, as the US Dollar (USD) softened following comments from Federal Reserve Chair Jerome Powell. Powell suggested that the Fed could cut interest rates twice more this year, citing slower hiring as a growing risk to the US economy. These dovish remarks have pushed traders to anticipate a 25-basis-point rate cut in October, with another likely in December, giving the Euro a boost against the Greenback.
The US government shutdown has delayed key economic releases, including the September jobs report. The Consumer Price Index (CPI) update is now scheduled for October 24, just before the Fed’s October 28–29 meeting, keeping traders focused on upcoming data to gauge USD strength.
In Europe, political developments have also supported the Euro. French Prime Minister Sebastien Lecornu suspended the controversial 2023 pension reform, postponing any increase in the retirement age until after the 2027 presidential election. The move eased political tensions in France and helped EUR/USD gain further ground.
Traders will continue to monitor speeches from Fed officials later on Wednesday, including Stephen Miran, Christopher Waller, and Jeff Schmid. Any hawkish comments could strengthen the USD and limit the pair’s upside, while dovish signals are likely to keep the Euro supported.
Traders will continue to monitor speeches from Fed officials later on Wednesday, including Stephen Miran, Christopher Waller, and Jeff Schmid. Any hawkish comments could strengthen the USD and limit the pair’s upside, while dovish signals are likely to keep the Euro supported.
From a forex trading perspective, EUR/USD remains in focus as traders weigh Fed rate expectations against European economic and political developments. Those trading EUR/USD with a foreign exchange broker should watch for volatility around upcoming US economic data and Fed commentary.
The EUR/USD pair climbed to around 1.1620 during Wednesday’s Asian session, as the US Dollar (USD) softened following comments from Federal Reserve Chair Jerome Powell. Powell suggested that the Fed could cut interest rates twice more this year, citing slower hiring as a growing risk to the US economy. These dovish remarks have pushed traders to anticipate a 25-basis-point rate cut in October, with another likely in December, giving the Euro a boost against the Greenback.
The US government shutdown has delayed key economic releases, including the September jobs report. The Consumer Price Index (CPI) update is now scheduled for October 24, just before the Fed’s October 28–29 meeting, keeping traders focused on upcoming data to gauge USD strength.
In Europe, political developments have also supported the Euro. French Prime Minister Sebastien Lecornu suspended the controversial 2023 pension reform, postponing any increase in the retirement age until after the 2027 presidential election. The move eased political tensions in France and helped EUR/USD gain further ground.
Traders will continue to monitor speeches from Fed officials later on Wednesday, including Stephen Miran, Christopher Waller, and Jeff Schmid. Any hawkish comments could strengthen the USD and limit the pair’s upside, while dovish signals are likely to keep the Euro supported.
Traders will continue to monitor speeches from Fed officials later on Wednesday, including Stephen Miran, Christopher Waller, and Jeff Schmid. Any hawkish comments could strengthen the USD and limit the pair’s upside, while dovish signals are likely to keep the Euro supported.
From a forex trading perspective, EUR/USD remains in focus as traders weigh Fed rate expectations against European economic and political developments. Those trading EUR/USD with a foreign exchange broker should watch for volatility around upcoming US economic data and Fed commentary.
xtrememarkets
Member
GBP/JPY Rises Ahead of Important UK Economic Data
Thursday saw GBP/JPY climb, rising past 202.50 after an initial dip in Asia that put forex traders in pause mode. They are now waiting for key UK economic data before making their next moves.
Given that recent job figures weren’t great, disappointing growth data may nudge the Bank of England toward further rate cuts. Consequently, the pound could struggle—perhaps even fall again against the yen.
Meanwhile, there is an anticipation that Japan’s central bank might lift interest rates once again this year, which will give strength to the yen. However, it is not certain, as the political unrest in Japan might make it more difficult for the bank to act quickly. It will help the pound’s strength against the Yen.
Despite gains, experts aren’t yet convinced prices in GBP/JPY forex trading will consistently rise, and folks in forex trading might want to see more robust purchases happen first before anticipating further increases. However, should values fall—and stay beneath 201.50—one can expect potential losses to grow.
While everyone waits for news about the UK economy, the British pound’s value in relation to the Japanese yen isn’t doing much at the moment. Traders are eager to learn how this economic snapshot will affect currency transactions.
Thursday saw GBP/JPY climb, rising past 202.50 after an initial dip in Asia that put forex traders in pause mode. They are now waiting for key UK economic data before making their next moves.
Given that recent job figures weren’t great, disappointing growth data may nudge the Bank of England toward further rate cuts. Consequently, the pound could struggle—perhaps even fall again against the yen.
Meanwhile, there is an anticipation that Japan’s central bank might lift interest rates once again this year, which will give strength to the yen. However, it is not certain, as the political unrest in Japan might make it more difficult for the bank to act quickly. It will help the pound’s strength against the Yen.
Despite gains, experts aren’t yet convinced prices in GBP/JPY forex trading will consistently rise, and folks in forex trading might want to see more robust purchases happen first before anticipating further increases. However, should values fall—and stay beneath 201.50—one can expect potential losses to grow.
While everyone waits for news about the UK economy, the British pound’s value in relation to the Japanese yen isn’t doing much at the moment. Traders are eager to learn how this economic snapshot will affect currency transactions.
xtrememarkets
Member
US Dollar Index Weakens Near 98.00 Amid US Shutdown and Fed Rate Cut Expectations
The dollar weakened for a fourth day running, hovering near 98.20 in Asia on Friday. This drop reflects investor unease stemming from the US government closure, alongside growing bets that the Fed will lower interest rates. All this is happening amidst difficulties resurfacing in relations between America and China.
For three weeks, the U.S. government remains closed because politicians haven’t agreed on how to fund things. As a result, important financial data is delayed, disrupting currency exchange transactions.
The heat is on—a Federal Reserve governor voiced support for lowering rates soon, while another wants even bigger cuts next year. To top it off, reports suggest people are buying less; moreover, job losses are increasing.
China’s proposed restrictions on rare earth shipments were condemned by US Treasury Secretary Scott Bessent, who called them both economic pressure and an attempt to control the global flow of these. Despite this sharp rebuke, American representatives indicated discussions haven’t been ruled out.
The dollar’s decline shows traders are increasingly uneasy regarding what lies ahead for the economy—also, how policymakers will respond. A dip in the DXY to around 98 suggests hesitation; people want to see what the Federal Reserve does next, alongside greater certainty concerning American politics.
The dollar weakened for a fourth day running, hovering near 98.20 in Asia on Friday. This drop reflects investor unease stemming from the US government closure, alongside growing bets that the Fed will lower interest rates. All this is happening amidst difficulties resurfacing in relations between America and China.
For three weeks, the U.S. government remains closed because politicians haven’t agreed on how to fund things. As a result, important financial data is delayed, disrupting currency exchange transactions.
The heat is on—a Federal Reserve governor voiced support for lowering rates soon, while another wants even bigger cuts next year. To top it off, reports suggest people are buying less; moreover, job losses are increasing.
China’s proposed restrictions on rare earth shipments were condemned by US Treasury Secretary Scott Bessent, who called them both economic pressure and an attempt to control the global flow of these. Despite this sharp rebuke, American representatives indicated discussions haven’t been ruled out.
The dollar’s decline shows traders are increasingly uneasy regarding what lies ahead for the economy—also, how policymakers will respond. A dip in the DXY to around 98 suggests hesitation; people want to see what the Federal Reserve does next, alongside greater certainty concerning American politics.
xtrememarkets
Member
EUR/CAD Gains Slightly Before Canada’s CPI Data
Tuesday saw a small lift for the EUR/CAD, hovering near 1.6345–1.6350 while everyone watched for Canada’s CPI numbers. Trading remained calm; neither the Euro nor the Canadian dollar strongly responded to what’s been happening economically.
The Canadian dollar lost some ground because surveys from the Bank of Canada aligned with predictions of further cuts to interest rates. Moreover, falling oil prices weighed on the Loonie (Canadian one-dollar coin), adding to its struggles in forex markets.
The Euro stumbled when S&P lowered France’s credit score, citing worries about the country’s spending plans as the reason. Though a softer Canadian dollar offered a bit of help, this news restricted how much the Euro could climb. Consequently, a slight strengthening of the US dollar further held back the Euro’s progress against the Canadian dollar.
People are eager to hear Christine Lagarde, the head of the European Central Bank (ECB), speak at a climate conference today. However, based on her statements, the Euro is unlikely to change because she is unlikely to discuss financial issues.
With Canadian inflation numbers on deck, traders seem hesitant—the report might influence the Bank of Canada’s next move, consequently affecting the direction of the Canadian dollar. Right now, the euro versus the loonie hovers a little under 1.6350, gaining some ground despite general jitters in trading.
The Canadian dollar lost ground versus many currencies today—the New Zealand dollar particularly—though it didn’t move much when stacked up against the British pound or Swiss franc.
Tuesday saw a small lift for the EUR/CAD, hovering near 1.6345–1.6350 while everyone watched for Canada’s CPI numbers. Trading remained calm; neither the Euro nor the Canadian dollar strongly responded to what’s been happening economically.
The Canadian dollar lost some ground because surveys from the Bank of Canada aligned with predictions of further cuts to interest rates. Moreover, falling oil prices weighed on the Loonie (Canadian one-dollar coin), adding to its struggles in forex markets.
The Euro stumbled when S&P lowered France’s credit score, citing worries about the country’s spending plans as the reason. Though a softer Canadian dollar offered a bit of help, this news restricted how much the Euro could climb. Consequently, a slight strengthening of the US dollar further held back the Euro’s progress against the Canadian dollar.
People are eager to hear Christine Lagarde, the head of the European Central Bank (ECB), speak at a climate conference today. However, based on her statements, the Euro is unlikely to change because she is unlikely to discuss financial issues.
With Canadian inflation numbers on deck, traders seem hesitant—the report might influence the Bank of Canada’s next move, consequently affecting the direction of the Canadian dollar. Right now, the euro versus the loonie hovers a little under 1.6350, gaining some ground despite general jitters in trading.
The Canadian dollar lost ground versus many currencies today—the New Zealand dollar particularly—though it didn’t move much when stacked up against the British pound or Swiss franc.
xtrememarkets
Member
GBP/USD Remains Below 1.3400 as Uk Borrowing Rises More Than Expected
Wednesday saw GBP/USD struggle, hovering near 1.3380 as Asian markets opened. Clearly investors were hesitant, awaiting crucial UK inflation figures—September’s CPI alongside the RPI.
The British pound dipped when figures revealed the UK government took on an additional £7.2 billion in debt during the first six months of the financial year. Overall borrowing hit £99.8 billion—surpassing predictions of £92.6 billion from budget officials. Meanwhile, September saw a surge in debt interest payments, climbing 66% to £9.7 billion, a new high for that time of year.
The British Pound didn’t fall far despite a weak US dollar—troubled by the continuing government closure. Because this stalemate stretches into a fourth week, vital figures like Nonfarm Payrolls are stalled, so gauging how well the American economy performs is tough for those trading.
Nearly every economist surveyed by Reuters—115 from a group of 117—figures the Federal Reserve will lower interest rates a quarter point, bringing them to between 3.75% and 4%, sometime this month. And many anticipate another cut before January even comes.
Traders are delaying currency transactions, with their attention focused on future news about British pricing as well as what the Federal Reserve reveals. If British debt continues to rise, the pound may fall; however, a weaker dollar may prevent major reductions in GBP/USD.
Wednesday saw GBP/USD struggle, hovering near 1.3380 as Asian markets opened. Clearly investors were hesitant, awaiting crucial UK inflation figures—September’s CPI alongside the RPI.
The British pound dipped when figures revealed the UK government took on an additional £7.2 billion in debt during the first six months of the financial year. Overall borrowing hit £99.8 billion—surpassing predictions of £92.6 billion from budget officials. Meanwhile, September saw a surge in debt interest payments, climbing 66% to £9.7 billion, a new high for that time of year.
The British Pound didn’t fall far despite a weak US dollar—troubled by the continuing government closure. Because this stalemate stretches into a fourth week, vital figures like Nonfarm Payrolls are stalled, so gauging how well the American economy performs is tough for those trading.
Nearly every economist surveyed by Reuters—115 from a group of 117—figures the Federal Reserve will lower interest rates a quarter point, bringing them to between 3.75% and 4%, sometime this month. And many anticipate another cut before January even comes.
Traders are delaying currency transactions, with their attention focused on future news about British pricing as well as what the Federal Reserve reveals. If British debt continues to rise, the pound may fall; however, a weaker dollar may prevent major reductions in GBP/USD.
xtrememarkets
Member
AUD/USD Marches Toward 0.6600 as Presidents Trump and Xi Hold Trade Talk
The Australian dollar rose on Thursday, hitting 0.6590 in Asia market hours. This shift occurred as the optimism bloomed when both American and Chinese leaders, President Trump and Mr. Xi, began discussions. Reports suggest discussions went well, covering topics like trade duties, soybeans, and specialized minerals, alongside TikTok. This good news gave investors confidence, so they embraced riskier ventures, consequently lifting the Australian dollar.
In addition to unexpectedly persistent inflation during the summer, August saw an increase in prices for consumers across the country. As a result, discussions about the Reserve Bank of Australia cutting interest rates quickly subsided. Despite a slight increase in unemployment, Governor Michele Bullock emphasized that the labor market remains strong.
Midweek saw the Federal Reserve ease credit—a slight cut of 0.25%. However, Jerome Powell didn’t promise another drop in December. Consequently, investors are now studying fresh economic data as they rethink plans.
The Australian dollar rose on Thursday, hitting 0.6590 in Asia market hours. This shift occurred as the optimism bloomed when both American and Chinese leaders, President Trump and Mr. Xi, began discussions. Reports suggest discussions went well, covering topics like trade duties, soybeans, and specialized minerals, alongside TikTok. This good news gave investors confidence, so they embraced riskier ventures, consequently lifting the Australian dollar.
In addition to unexpectedly persistent inflation during the summer, August saw an increase in prices for consumers across the country. As a result, discussions about the Reserve Bank of Australia cutting interest rates quickly subsided. Despite a slight increase in unemployment, Governor Michele Bullock emphasized that the labor market remains strong.
Midweek saw the Federal Reserve ease credit—a slight cut of 0.25%. However, Jerome Powell didn’t promise another drop in December. Consequently, investors are now studying fresh economic data as they rethink plans.
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