Pound sterling remained lower throughout the day, with GBPEUR hitting a new one-month low after market expectations shifted, now expecting the next Bank of England rate cut to occur in September due to disappointing job numbers. US dollar moves were muted as talks between the US and China continued for a second day.
*Daily move - against G10 rates at 7:00 am, 11.06.25
** Indicative rates - interbank rates at 7:00 am, 11.06.25
Overnight, US and China agreed on a framework to ease trade tensions. However, given there were no precise details on what the plans were, market reaction has been muted. The EU also believes that the trade negotiations with the US will extend beyond the July 9th deadline.
All eyes on the US CPI numbers due out today at 1:30pm, as we wait to see if the numbers can jolt markets from muted movements this week. A minor pick-up is expected in the inflation numbers, and of course, a bigger-than-expected number could embolden dollar buyers. GBPUSD currently sits at the lower end of its current range.
Rachel Reeves is also set to detail government spending plans through the end of the decade. The spending review may well reiterate the domestic fiscal challenges ahead.
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