As we prep for Halloween, Fury/Usyk face off again and the UK braces for the Budget, FX markets are delivering their own knockouts. With GBP against the Dollar falling under 1.30 it's been a notable week for US Dollar sellers. It's most definitely shaping up to be an interesting week next week too! Here’s what happened in the FX world this week, and how it might impact your upcoming conversions.

Key Updates:

• GBP: GBP started the week well however fell as a rise in UK government borrowing fuelled worries about the upcoming Autumn Budget.
• USD: The Dollar is holding its ground, boosted at the start of the week by rising US Treasury yields.
• EUR: ECB president Lagarde suggested that the European bank needs to be cautious in regard to further interest rate cuts.

GBP

The Pound has been on a slide this week, following a poor release of the UK’s preliminary Services PMI for October. UK business growth also hit an 11 month low as reported by S&P Global. Companies reported that clients were delaying decision-making, due to heightened economic uncertainty in October – ahead of Rachel Reeves’s first budget, and with conflict in Ukraine and the Middle East continuing. With all this in mind, it wouldn’t be surprising if the Pound faces more headwinds in the coming weeks.

Key Dates to Watch:

• October 30th: THE BUDGET.
• November 2nd: Bank of England Policy meeting.

USD

The US Dollar has been slowly strengthening amid rising bets that Donald Trump will claim victory in next month’s US Presidential election. Anticipation is building as Trump's protectionist economic strategies are predicted to ignite US inflation. This fuels the US dollar's rise with the prospect that the Federal Reserve could maintain elevated interest rates for an extended period. All eyes will be on the upcoming Fed meeting at the start of November, where we might get more clues about future policy directions.

Key Dates to Watch:

• November 1st: Fed Rate Decision
• November 3rd: US Non-farm Payrolls

EUR

The Euro started the week well but has had a tough time staying afloat. Weak PMI data from the Eurozone continues to put pressure on the currency, and EUR/GBP has sitting around 1.20. EUR/USD has also dropped in the Euro's favour at one point lower than 1.08. Economic momentum in the Eurozone has been lacking however, and if this trend continues, the currency might find itself in a tricky spot heading into November.

Key Economic Dates:

• November 2nd: Eurozone Manufacturing PMI
• November 6th: ECB Economic Bulletin

Final Thoughts:

We’ve got some big data releases coming up next week that could shake things up across the board. The UK Budget could be a tough pill to swallow however, if you’ve got upcoming transfers, let us know—we’re here to help you navigate the FX landscape and make sure you’re getting the most out of your conversions.

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A note to please continue to use support@blkfx.co.uk in your emails as well as your account manager to make sure someone in the team can pick up your query as soon as possible.

If you need any advice or have questions about how these trends might affect your specific situation, don’t hesitate to reach out!

You can always reach us via email at info@blkfx.co.uk, on WhatsApp: +44 7939 432196 or via phone: 020 8064 0617 or any of the team via their direct emails