The UK economy returned to growth in November after an initial poor start to the final quarter of 2025 with growth figures of 0.3% had beaten expectations of minimal 0.15 growth. The manufacturing sector in particular grew by 2.1% which was helped mainly due to resumed operations at Jaguar Land Rover factories. This should be taken lightly in all fairness, as improved growth only realistically coming from Car Production doesn’t bode well if and when this slows down at some point.
The Bank of England cut their interest rates at their final meeting of 2025 and markets seem to be anticipating further cuts throughout 2026 as predictions point towards a sharp slowdown in Inflation. Cooling energy prices and measures to reduce living costs in the most recent budget should assist with bringing inflation back to it’s 2% target later this year.
We turn our attention this afternoon to the weekly U.S Continuing Claims and Jobless Claims with Jobless Claims set to show a further increase of 7,000 claims. A further increase in claims could potentially see the Dollar weaken slightly, however the main focus surrounding the Dollar currently is the back and forth between Donald Trump and Fed Chair Jerome Powell. Trump has recently stated he has no further plans to fire Jerome Powell which in turn should remove any uncertainty and potentially act as a repreival for The Dollar.
GBP/EUR 1.1538 GBP/USD 1.3433 GBP/AED 4.9351
GBP/AUD 2.0063 GBP/CHF 1.0752 GBP/CAD 1.8680
GBP/NZD 2.3367 EUR/USD 1.1626 GBP/ZAR 22.0170