The Federal Reserve surprised markets last week, delivering a jumbo 50 basis point rate cut. Yet, the bank’s famous ‘dot plot’ of interest rate projections was moderately more hawkish than expected, which limited the downside in the US dollar. Meanwhile, the Bank of England held rates steady, emphasising again that additional cuts are likely to be gradual. This has helped propel the pound to its strongest position since the Brexit vote in trade-weighted terms.The euro has lagged behind its UK counterpart, particularly following the collapse in this week’s Euro Area PMI figures. Does this point to another period of stagnation ahead, and could the data force the ECB to deliver back-to-back cuts? Our analysts give their thoughts in this week’s FX Talk episode.We’d like to hear from you! Provide us with feedback so we can improve the podcast: https://linktr.ee/fxtalk Liked this show? Please leave us a review here – even one sentence helps!

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