All eyes are on the British pound this week as markets anticipate the Bank of England’s policy decision, while the U.S. dollar remains firm amid ongoing demand and hawkish Fed sentiment.
Key Insights:
- All eyes on the pound in the coming days
- The dollar holds steady amid ongoing demand
Market Recap:
The US dollar extended its winning streak for a third consecutive session, driving EUR/USD to its lowest point since August and pushing GBP/USD to a six-month low. The Dollar Index edged up 0.1%, adding to a 1.7% monthly gain, as hawkish remarks from Federal Reserve officials—including Dallas Fed’s Logan—bolstered expectations that policymakers may pause after this week’s anticipated rate cut.
In Asia, the Japanese yen gained some support after Tokyo inflation and industrial output exceeded forecasts, prompting renewed government concern over currency weakness. Across Europe, inflation in the eurozone eased but stayed above the ECB’s target, reinforcing expectations that the central bank will keep rates on hold, while French CPI declined further. Meanwhile, the British pound remained under pressure amid growing speculation that the Bank of England could deliver a rate cut next week.
Today's Market Watch:
The U.S. government shutdown continues to delay the release of official labour data, leaving markets to rely on private sector estimates, which point to modest October job growth of around 30,000–60,000 and a slight rise in unemployment to roughly 4.5%. Attention will also be on today’s ISM manufacturing data, which is expected to improve slightly to 49.5, supported by stronger new orders and rising input costs.
In Canada, employment figures for October are projected to show a decline of about 25,000 jobs, with trade tensions weighing on hiring and the unemployment rate likely edging up to 7.2%. However, the Bank of Canada’s recent rate cut is expected to provide some medium-term relief for the labour market.
On the central bank front, the Bank of England is widely anticipated to keep rates steady at 4% during Thursday’s meeting. That said, a shift in voting patterns could indicate growing support for an early rate cut, with Barclays and Goldman Sachs both suggesting a surprise cut is possible. Meanwhile, the Reserve Bank of Australia is also expected to hold rates at 3.6%, following stronger-than-expected Q3 inflation, which has dampened expectations for near-term easing.
3rd November 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.