Published: 28/10/2025 By ECAP
POLICYMAKERS DETERMINE
The British Pound continues to fail to recover caused by concerns about the UK policymakers, UK debt and the worries surrounding the budget. Reflecting this, a recent survey of major investment banks has revealed there is potential for further significant weakness against other major currencies throughout 2025. Although, if the economic and policy conditions improve then there is scope for recovery. Overall, the pound remains subdued.
The Euro remained steady but subdued as improved German business sentiment failed to generate strong momentum. Despite an uptick in manufacturing optimism, weaker assessments of current conditions limited gains. Investors await key Eurozone data and the upcoming ECB policy decision, with expectations of minimal changes. Overall, the euro is likely to remain stable through late 2025, reflecting resilience amid cautious market sentiment and modest economic recovery..
The U.S. Dollar weakened following softer inflation data, which increased expectations of Federal Reserve rate cuts. Markets anticipate at least a 25-basis-point reduction, with potential for a 50-point move before year-end. Cooling price pressures and improved risk sentiment contributed to the dollar’s decline, while upcoming Federal Reserve policy decisions will determine its short-term performance.
Data supplied by GC Partners