BOE Rate Projections Support Short-Term Strength for Sterling
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 27 2025
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Source: WSJ
Sterling Outlook: The outlook for sterling is positive due to expectations of a cautious approach by the Bank of England regarding interest rate cuts, leading to short-term momentum for the currency.
Euro Performance: The euro has fallen to a one-week low against sterling, with predictions that it could drop below 0.8600 pounds.
Dollar Reaction to Fed Politics: President Trump's dismissal of Federal Reserve Governor Lisa Cook is seen as a politicization of the central bank, which may negatively impact the dollar in the long run, although immediate reactions have been subdued.
Current Dollar Index: The DXY dollar index has risen by 0.3% to 98.537, reflecting ongoing market focus on economic data rather than political changes within the Fed.
Analyst Views on SNEX
About SNEX
StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders, and investors to the global market ecosystem through digital platforms, end-to-end clearing and execution services, high-touch service, and expertise. Its segments include Commercial, Institutional, Self-Directed/Retail, and Payments. The Commercial segment comprises the activities associated with the identification, management, hedging and monitoring of various commodity and financial risks faced by commercial entities in their business cycles. It provides institutional clients with a suite of equity trading services to help them find liquidity with execution, as well as prime brokerage in equities and various foreign currency pairs and swap transactions. It provides its retail clients around the world access to over 18,000 global financial markets. It provides customized payment, technology and treasury services to banks, charities, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
