FX markets

Daily Market View 28-10-2025

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1:11

Lower Sugar Sinks Sterling

1 Minute Market Rundown

British Retail Consortium figures suggest the sharpest drop in food prices for nearly 5 years.
Much of this is the result of a drop in sugar prices, caused by a glut in supply.
Chances of a BoE rate cut next week rise to 30%, from 25% prior, as market becomes optimistic ahead of budget.

GBP-

The Pound is under serious pressure again today, this time the result of a soft domestic figure, with a Sugar glut torpedoing GBP's recent strength. I would say personally that I on my own drive up sugar prices with my personal consumption and it must be understood that any drop in sugar prices will likely have a big effect on overall food inflation.

And that it has, with prices increasing only 1% YoY in October, down from 1.4% in September.

Screenshot 2025-10-28 090239

GBPEUR has been especially hard hit, sinking to a 3 year low in what represents a great opportunity for anyone looking to repatriate profits of a European house sale or other items. Bets of a cut from the BoE next week are up at 30%, close to the highest since August. I'm still very skeptical, but time will tell what the BoE is truly feeling.

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

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