FX News | Caxton Daily Market View

Daily Market View 27-10-2025

Written by David Stritch | Oct 27, 2025 9:27:56 AM

GBP shakily Recovers as Traders Weigh BoE Actions

 

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The pressure being heaped on the Fed by Trump made it obvious that a cut was always the most likely case, but last weeks lower than expected CPI print made a Fed cut this week all but certain.

Just a small 0.25% is expected to be wiped off the overall Fed rate on Wednesday, in a move that 99% of the market already expect. Just what tone Powell takes after will be the most interesting watch, given a second cut in December is given a ever more modest 98% chance.

In France, political concerns drag on as the Socialist Parties quid-pro-quo for supporting the government, their wealth tax plan, fails to draw early support in the Assembly. The plan, which would see individuals with a personal wealth of over €10 million pay 3% of their wealth into a Government scheme.

The failure of this vote would seriously threaten the stability of the French government, yes again, and is already raising French bond yields further above German bonds, a bad sign for the Euro.

 

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