USD weakened for the second consecutive day as treasury yields continued to decline, digesting Fed Powell signalling no pushback against market expectations for two rate cuts this year.
GBP recovered losses from earlier this week ahead of August’s GDP numbers.
*Daily move - against G10 rates as of 06:00 BST, 16.10.25
** Indicative rates - interbank rates as of 06:00 BST, 16.10.25
Helped by a rebound in manufacturing, UK GDP for August came in as expected at a very modest 0.1%. But it's worth that noting July’s reading was revised lower to -0.1% from 0.0%. As a result, GBP is marginally unchanged and gilt yields have fallen modestly.
EUR is starting the day marginally weaker, likely reflecting heightened market caution as French Prime Minister Lecornu prepares to navigate two imminent no confidence motions later today.
For the rest of the day we have a host of speakers from the Fed, ECB and BoE
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