Fed Decision Day
GBP: The Pound is steady this morning as markets continue to absorb the impact of last week’s Budget. Softer gilt yields and a calmer political backdrop have helped support sterling, although the UK’s weak growth outlook remains a concern. With no major UK data today, the Pound is likely to move in response to global market sentiment ahead of next week’s key labour and GDP figures.
EUR: The Euro is slightly weaker as political tensions in France and soft German trade data weigh on confidence. Investors remain cautious while awaiting further clarity on Eurozone economic momentum. With no major Eurozone releases today, the Euro is set to take its direction from broader market moves and from any shifts in sentiment following the Federal Reserve meeting in the US.
USD: The Dollar is holding firm ahead of the Federal Reserve decision later today. Markets expect a 25 basis point rate cut, but the focus is on whether the Fed signals further hikes in early 2026. A careful tone from the Fed would likely keep the Dollar supported. With no major US data scheduled before the announcement, the meeting will set the tone for the rest of the week.
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