Markets are braced for a busy day, with central bank moves on both sides of the Atlantic shaping sentiment. Here’s what to watch and how it could impact currency markets.
Bank of England Set to Cut Rates
The headline event of the day is the Bank of England’s policy announcement, where a 0.25% interest rate cut is widely anticipated.
The decision will be released at 12:02pm – slightly later than usual – with traders keen to see how the Bank positions itself for the rest of the year.
Beyond the cut itself, the tone of the Bank’s commentary will be closely scrutinised. Any forward guidance on the potential for further rate adjustments before year-end could have a significant impact on sterling.
Pound Slips Overnight on Trade Talk Tensions
Sterling has already weakened overnight, falling around 100 points against the US dollar.
This move followed fresh developments surrounding a potential UK-US trade deal and shifting expectations around future interest rate policy.
Fed Announcement as Expected
Last night, the US Federal Reserve delivered its own policy update – raising interest rates slightly, but offering no major surprises.
With the Fed continuing to tread carefully, investors remain focused on incoming data to gauge the health of the US economy and the likely path of policy.
US Employment Numbers on the Radar
Later this afternoon, markets will digest fresh US employment figures – a key piece of data that could influence both dollar sentiment and global market confidence.
Stay Ahead with Qu Money
With rate decisions, economic data, and political developments all affecting currency movements, now is the time to be proactive.
For personalised insights or to explore strategies to manage currency exposure, speak to one of our experts at Qu Money today.