All eyes on North America today! The Fed and Bank of Canada are both expected to cut rates, but will their comments signal more to come? We've also got the latest on UK inflation and what it could mean for tomorrow's Bank of England decision.
Key Takeaway’s:
The U.S. dollar is under pressure as markets anticipate an interest rate cut later today. Meanwhile, in the U.K., consumer inflation has held steady at 3.8%. Finally, Canada is widely expected to lower its key interest rate by 0.25% today.
Market Recap
U.S. Dollar Softens: The U.S. dollar experienced a decline, as market participants continued to factor in the high probability of an interest rate reduction by the Federal Reserve today.
Euro Climbs: The euro reached its highest valuation against the U.S. dollar since 2021. This was largely influenced by weakening U.S. Treasury yields and market expectations for a more accommodating monetary policy from the Federal Reserve.
UK Earnings vs. Inflation: In the U.K., average earnings growth was in line with forecasts at 4.7%, staying above the inflation rate. The pound showed mixed performance, gaining against the dollar but losing ground to the euro.
Today's Overview:
UK Inflation Holds Steady
This morning, the UK's inflation rate (CPI) was confirmed at 3.8%, matching forecasts. This development reinforces the widespread belief that the Bank of England will maintain its current interest rate of 4% during its policy meeting tomorrow. The persistent inflation is seen as a major factor that will likely prevent the central bank from implementing further rate cuts in the near term.
Focus Shifts to North America
The spotlight today is on the United States and Canada, where both central banks are expected to lower their key interest rates by 0.25%.
U.S. Federal Reserve: While a quarter-point rate cut is widely anticipated, the market's focus will be on the post-meeting remarks from Fed Chair Powell and the updated economic projections (the "dot plot"). Traders and investors will be looking for any signals about the future path of monetary policy. Will the Fed hint at more aggressive easing, or will it stick to a cautious, data-dependent approach? The outcome of this meeting is likely to cause significant volatility for the U.S. dollar.
What this means for you: Given the potential for sharp currency movements, it may be prudent to consider hedging strategies or setting market orders to manage risk before the announcements this evening.
17th September 2025
How We Can Help...
Our team are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer guidance on the best options available to you.
Get in Touch!
P: 07441 910 897
E: FX-Admin@frank-exchange.com
This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.
Contact Us
Office
Unit F1, Ransom Hall, Ransom Wood Business Park, Southwell Road West,
Mansfield, NG21 0HJ.
Legals:
Payment and e-money services (Non MIFID related products) are provided by The Currency Cloud Limited. Registered with the Dutch Chamber of Commerce in the Netherlands under number 72186178. Registered office Mr. Treublaan 7, 1097 DP, Amsterdam, Netherlands. CurrencyCloud B.V. is licensed and regulated by De Nederlandsche Bank as an Electronic Money Institution (Relation Number: R142701)
For United States, Payment services for Frank Exchange Limited (Non MIFID related products) are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here.VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.
Frank eXchange’s Payment and Foreign Currency Exchange Services are also provided by Ebury Partners UK Limited.
Ebury Partners UK Limited (EPUK) is an Authorised Electronic Money Institution (Financial Services Register No. 900797) and is licensed to provide payment services including FX spots and FX Forwards for the commercial purpose of the facilitation of payments for identifiable goods or services and direct investments. Ebury Partners UK Limited is registered with the Information Commissioner's Office, with registration number: ZA345828.
Anti-Bullying and Harassment Policy
At Frank eXchange Limited, we are committed to providing a safe and respectful environment for both our customers and staff. We do not tolerate any form of bullying, harassment, or abusive behaviour towards our employees.
Any communication that is deemed offensive, threatening, or disrespectful may result in the termination of services. We expect all interactions to be conducted with professionalism and courtesy to ensure a positive experience for everyone involved.
Thank you for your understanding and cooperation.