Currency news / November 4, 2025

Reeves sets stage for tax hikes

3 min read Thanim Islam

Thanim IslamNovember 4, 2025

Market snapshot:

GBP drops during pre-budget speech

Yesterday's currency recap

USD extended gains for a fourth straight day after Fed’s Goolsbee warned inflation risks remain elevated, dampening expectations for a December rate cut. The USD Index rose less than 0.1%, recovering after weaker-than-expected ISM manufacturing data (48.7 vs 49.5).

GBP recovered marginally ahead of Thursday’s BoE meeting with markets leaning toward a December cut.

CHF gained 0.4% as softer Swiss CPI (0.1% YoY) spurred fresh easing talk.

AUD weakened by 0.2% ahead of the RBA meeting, where rates are expected to remain on hold at 3.6%.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	0.20%	2.0119
GBPCAD	0.25%	1.8475
GBPCHF	0.30%	1.0615
GBPDKK	0.04%	8.5137
GBPEUR	0.04%	1.1404
GBPJPY	0.06%	202.681
GBPNOK	-0.07%	13.3026
GBPNZD	0.23%	2.304
GBPSEK	-0.17%	12.4636
GBPUSD	0.02%	1.3149

*Daily move - against G10 rates as of 06:00 GMT, 04.11.25
** Indicative rates - interbank rates as of 06:00 GMT, 04.11.25

Key data points

Currency	Event	Period	Consensus	Previous
USD	JOLTS Job Openings	Sep	--	7,227,000

What we think

GBP is weaker to start the day as Chancellor Rachel Reeves laid the grounds for more tax hikes in a pre-budget speech at Downing Street. Reeves also commented that the budget will be focused on lowering inflation to pave the way for more interest rate cuts whilst at the same time putting a ceiling on the governments debt pile and borrowing costs.

US JOLT opening numbers are likely to be released today to give us a gauge of how the US job market is doing. A strong number here could reduce the odds of a December rate cut laying the ground for further support for USD.

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