Following on from last week, we saw a fair bit of strength from the Pound following the BOE rate cut, which was the first to ever hold 2 rounds of votes – although there seems to be a wide speculation in whether or not this was beneficial as hiring intentions fell to their weakest level since Covid-19, food prices and inflation continue to soar above the 2% target and analysis are still expecting another cut in November which could only fuel spending and push inflation higher so we could see a re-evaluation of the rate-cutting cycle.
Trump has been busy over the past few days, going after the Intel CEO Lip-Bu Tan for supposed ties to Chinese communist parties, although this could be seen as Trump overplaying his hand and getting to involved with companies to align with his own interests. The US government has also secured 15% of revenue from Nvidia’s chip sales in China, (which amounts to $930 million based on 2024 sales).
Surrounding the EUR, most analysts are awaiting the UK and EU GDP data released later this week for fresh direction on the pair, with UK employment the main focus.
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