We're breaking down the factors driving currency movements, including Friday's US jobs report, the latest on the USD, and what to watch for with Eurozone inflation.
Key Takeaways:
- All eyes are on the US jobs report later this week.
- No USD trades settling today due to the Labor Day holiday.
Market Recap
USD Sees Volatility on Friday
The US Dollar experienced a day of mixed performance on Friday. After an early morning climb, the currency retreated as the market closed, with month-end trading activity playing a key role. The release of the Core PCE inflation data, a key measure watched by the Federal Reserve, came in exactly as anticipated, offering no surprises to the market.
Pound Closes the Week Weaker
The British Pound Sterling faced a steady decline throughout Friday's session. The currency's sell-off was linked to a broader downturn in risk appetite across the markets, ultimately leading the GBP to end the week on a weaker note.
Today's Overview:
Key US Economic Drivers
The US Dollar is facing a weaker start to the day, following a significant ruling from a US Court of Appeals. The court deemed President Donald Trump's global tariffs as illegal, although the levies will remain in place while the case moves forward.
Looking ahead, the main event for the USD will be Friday's US jobs report, which is garnering more attention than usual after August saw a downward revision. Additional market focus will be on the ISM manufacturing data and the latest Federal Reserve Beige Book.
Eurozone Inflation in the Spotlight
Meanwhile, all eyes are on the Eurozone as it releases its latest CPI numbers. Given that the markets have already priced out any further interest rate cuts from the European Central Bank (ECB) this year, a downside surprise in the inflation data would be a key market catalyst.
01st September 2025
How We Can Help...
Our team are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer guidance on the best options available to you.
Get in Touch!
P: 07441 910 897
E: FX-Admin@frank-exchange.com
This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.
Contact Us
Office
Unit F1, Ransom Hall, Ransom Wood Business Park, Southwell Road West,
Mansfield, NG21 0HJ.
Legals:
Payment and e-money services (Non MIFID related products) are provided by The Currency Cloud Limited. Registered with the Dutch Chamber of Commerce in the Netherlands under number 72186178. Registered office Mr. Treublaan 7, 1097 DP, Amsterdam, Netherlands. CurrencyCloud B.V. is licensed and regulated by De Nederlandsche Bank as an Electronic Money Institution (Relation Number: R142701)
For United States, Payment services for Frank Exchange Limited (Non MIFID related products) are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here.VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.
Frank eXchange’s Payment and Foreign Currency Exchange Services are also provided by Ebury Partners UK Limited.
Ebury Partners UK Limited (EPUK) is an Authorised Electronic Money Institution (Financial Services Register No. 900797) and is licensed to provide payment services including FX spots and FX Forwards for the commercial purpose of the facilitation of payments for identifiable goods or services and direct investments. Ebury Partners UK Limited is registered with the Information Commissioner's Office, with registration number: ZA345828.
Anti-Bullying and Harassment Policy
At Frank eXchange Limited, we are committed to providing a safe and respectful environment for both our customers and staff. We do not tolerate any form of bullying, harassment, or abusive behaviour towards our employees.
Any communication that is deemed offensive, threatening, or disrespectful may result in the termination of services. We expect all interactions to be conducted with professionalism and courtesy to ensure a positive experience for everyone involved.
Thank you for your understanding and cooperation.