Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Sterling remains vulnerable to rate cut speculation – Euro currency news daily

    Sterling remains vulnerable to rate cut speculation – Euro currency news daily

    eub2By eub22 July 2025 Finance No Comments3 Mins Read
    — Filed under: EU News
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Daily currency update

    Sterling remains under pressure as GBPEUR slipped to around 1.1650, driven by renewed political instability and weakening UK economic momentum. A growing internal revolt within the Labour Party over welfare spending has cast doubt on the government’s fiscal credibility, amplifying investor concerns. Bank of England Governor, Andrew Bailey struck a cautious tone, acknowledging persistent inflationary pressures while signalling a gradual shift toward a neutral policy stance. However, strong UK wage growth continues to complicate the inflation outlook, adding uncertainty to the timing of future rate cuts.

    Goldman Sachs has downgraded its GBP forecasts, citing deteriorating UK fundamentals and increased demand for eurozone assets. The euro’s relative strength reflects more stable political and economic conditions across the continent. With UK growth slowing and political risk resurfacing, pressure is mounting on the BoE to consider earlier rate cuts, which could further weaken the pound. Overall, sterling appears increasingly vulnerable, particularly against the euro, as markets reassess the UK’s economic and political trajectory.

    Key movers

    The US dollar strengthened, buoyed by upbeat ISM Manufacturing and JOLTs data, as well as rising Treasury yields. At the ECB Forum in Sintra, Fed Chair Jerome Powell maintained a cautious tone, emphasising the Fed’s data-dependent approach. While he didn’t rule out a July rate cut, he offered no strong indication it’s imminent. Powell warned inflation may rise over the summer due to tariffs and reiterated that policy will remain unchanged unless the US jobs market weakness or easing inflation emerges. With inflation still above target, the bar for rate cuts remains high. Markets now await the US Non-Farm Payrolls report on Friday, which could shift expectations.

    The Euro held steady as ECB President Christine Lagarde confirmed inflation has returned to the 2% target but avoided committing to further rate cuts. Eurozone CPI met expectations, and a decline in consumer inflation expectations supported the ECB’s disinflation narrative. Meanwhile, June’s final manufacturing PMI at 49.5 suggested tentative stabilization in the industrial sector. The ECB appears to be pausing its rate-cut cycle for now, maintaining flexibility. It is unlikely to push back against market expectations for easing unless inflation shows signs of reaccelerating, keeping policy in a wait-and-see mode. Overall, eurozone data supports a cautious but steady ECB stance.

    Expected Ranges

    GBP/USD: 1.3615 – 1.3745 ↑

    GBP/EUR: 1.1580 – 1.1685 ↓

    EUR/USD: 1.1690 – 1.1825 ↑


    IMPORTANT: This communication has been prepared by marketing/sales personnel of UKForex Limited [CN:04631395] (trading as OFX) (OFX). This commentary is intended for informational purposes only and does not constitute substantive “research” as that term is defined by applicable regulations. OFX is an online foreign currency exchange money transfer service and does not offer any form of margin or speculative trading facilities; and neither it nor its employees are in the business of providing advice to consumers or investors. The information contained herein does not take into account the financial situation or objectives of any particular person and should not be construed as business or investment advice or investment recommendations. Recipients of this communication should exercise independent judgement and obtain advice from their legal, tax or financial advisors.

    OFX has taken every reasonable precaution to ensure that any attachment to this e-mail has been swept for viruses. However, we cannot accept liability for any damage sustained as a result of software viruses and would advise that you carry out your own virus checks before opening any attachment.

    OFX | 1st Floor, 85 Gracechurch Street, London, United Kingdom, EC3V 0AA

    Add A Comment

    Comments are closed.

    eub2
    • Website

    eub2 is the default publisher for EUbusiness.

    Related Content

    Euro coins and notes - Photo by Pixabay

    Eurozone Economic Calendar

    Save on your money transfers with EUbusiness and OFX

    Euro notes and coins - Photo by Pixabay

    Euro facts and figures

    Convergence report reviews Member States’ progress towards joining euro area

    Money transfer - Image by Mudassar Iqbal from Pixabay

    Save on your money transfers with EUbusiness and OFX

    2014 Convergence Report and Lithuania

    LATEST EU NEWS
    Wopke Hoekstra- Photo © European Union 2025

    EU presents 2040 climate target of 90pct cut in greenhouse gas emissions

    2 July 2025
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Sterling remains vulnerable to rate cut speculation – Euro currency news daily

    2 July 2025
    Danish presidency decorations - Photo © European Union 2025

    New Danish EU presidency aims to deliver on security and competitiveness

    1 July 2025
    Accessibility - Photo by RDNE Stock project on Pexels

    EU accessibility act into force for key digital products

    30 June 2025
    Christophe Hansen - Photo © European Union 2025

    EU agrees new trade deal with Ukraine

    30 June 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?