USD remained soft throughout yesterday's trading session following on from Trump's comments that he is considering naming an early replacement for Jerome Powell. EURUSD had its longest winning streak in nearly a year and GBPUSD its best run on a monthly basis since early 2021.
Bank of England (BoE) Governor Bailey was on the wires yesterday as well commenting that “uncertainties about structural changes in [the] world economy have impacted FX” and when it came to the economy, that "short-term pick up in inflation introduces some further uncertainty in recent months, evidence that slack is opening up has strengthened; especially in the labour market” – hinting at the threat of potential stagflation.
*Daily move - against G10 rates at 7:00 am, 27.06.25
** Indicative rates - interbank rates at 7:00 am, 27.06.25
News overnight revealed that the US and China finalised a trade truce agreement has kept markets in a buoyant mood going into the end of the week. Core PCE numbers this afternoon will dictate whether this dollar slide continues and if market pricing firms up for three expected rate cuts by the Federal Reserve (Fed) this year. If existing levels are breached, then we could well see GBPUSD and EURUSD test the 2021 highs.
Read more about the Federal Reserve's interest rate decisions here:
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.
Have a great day.
