What you need to know

Plenty of data this week as we head into a busy November. The USD has pulled back and GBP is hanging in there. The last 2 months of this year have plenty of opportunity to be the most volatile.

Friday's data from the USA will be all-important, but USD weakness is well truly upon us, as the Uk moves counter to other economies and looks set to hold interest rates higher for longer.

 This afternoon we have key US inflation data, following a weakening USD and a stronger Pound which set the scene for September as the market starts to predict the pace and magnitude of upcoming rate cuts

A busy, data-filled end to the week

The USD weakens despite global tensions and increasing chances of a Trump victory. The ECB kept rates on hold and continues to manage market expectations well. GBP gains on the back of Labour vistory bringing some certainty to the Uk domestic scene.

GBP weakened a little this afternoon - as the Bank of England, which sets interest rates in the UK, left its policy interest rate unchanged at 5.25% at the meeting

This week is likely to see a well-signaled 0.25% rate cut from the ECB, but the market will be looking for signals regarding the pace & extent of future cuts.

Plenty ahead this week with the Bank of England taking centre stage

In mid-March, the UK and US held rates steady but indicated that cuts are on the way – this may no longer be the case, but the ECB looks set to cut in June.

Lots to digest from last week’s rate decisions - the world is waiting for these cuts to be implemented and in the meantime, the waiting game is straining FX markets.

Plenty of data this week, but will it cause the major currency pairs to break out of recent ranges?