FX markets

Daily Market View 05-02-2026

Listen to this daily briefing

1:24

Dawn of a Massive Day as the BoE and ECB Step up for Decisions

1 Minute Market Rundown

Pound pushed off its 6 month high against the Euro as traders tighten up ahead of decisions.
Bank of England goes first, with decision at 12:00, whilst ECB follows at 13:15.
Neither expected to change rates, although statements that follow will be key.

GBP-

The payoff for the Pound's 5 week long comeback against the Euro crystalised into GBPEUR's best rate since August yesterday, before traders rethought their bets.

I suspected that the Pound was benefitting from a sleepy first week of August rather than rallying off the back of improved fundamentals.

French

Yields on French bonds picked up despite the budget agreement on Monday and the Euro powered on even as Eurozone inflation released softer than expected. It all suggests a holding pattern ahead of today's key decisions.

The BoE has higher inflation but a very poor economic and employment outlook, whilst the ECB is seeing falling inflation and an improving economy. The ECB seems more clear cut to signal "business as usual" whilst the tone of the BoE will prove more interesting.

Markets Today

*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.

Today's Economic Calendar

Major Economic Releases (All times in GMT)

Bank of England Interest Rate Decision- 12:00
European Central Bank Interest Rate Decision- 13:15

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