UK Inflation released this morning has shown price pressures easing from 3.4% to 3% which has now increased the possibility of an interest rate cut by the Bank of England next month. Today’s number is also crucially the lowest that Inflation has been since March 2025.
Contributing factors to the drop in prices came from the Petrol Pumps, Lower Airfares and as well as falling costs within Meat, Bread and Cereals in particular. Analysts and traders are now firmly pricing in a rate cut next month at 86% which should also see a shift in the voting momentum within the Bank of England. Market projections currently suggest we could see Inflation fall further in April, potentially towards 2.2% as energy relief costs come into effect.
Elsewhere, the Dollar has pushed marginally higher across the beginning of this week off the back of a better-than-expected jobs report. This trend is likely to continue in the short term with positive growth anticipated within their industrial production. Aside from economics, The U.S & Iran have also reached an agreement surrounding the main principles over their nuclear dispute.
Keeping with The U.S, we have their latest meeting minutes to be released from last month’s meeting. Rates were kept unchanged, however future uncertainty is still in place due to the pending arrival of Kevin Warsh as the next Fed Chair, and the potential path he takes the central bank down.
GBP/EUR 1.1454 GBP/USD 1.3563 GBP/AED 4.9835
GBP/AUD 1.9177 GBP/CHF 1.0455 GBP/CAD 1.8505
GBP/NZD 2.2581 EUR/USD 1.1826 GBP/ZAR 21.7116