Financial markets navigated a complex week shaped by central bank signals, slowing growth data, political developments, and renewed geopolitical tensions. Here’s a structured breakdown of what moved markets:
🇺🇸 Federal Reserve – FOMC Minutes
The Fed kept interest rates unchanged, signalling it is not in a hurry to cut.
* Inflation remains sticky and above the 2% target
* Policymakers emphasized a data-dependent approach
* Both rate cuts or further tightening remain possible
The tone suggests patience, not pivot.
🇬🇧 UK Inflation & Political Developments
UK CPI cooled to 3.0% YoY, with CPIH easing to 3.2%.
Core inflation edged lower, although services inflation remains elevated.
This supports a cautious Bank of England stance.
Meanwhile, political headlines added uncertainty:
* Ongoing investigations related to Prince Andrew
* Possible legislative action affecting royal succession
These developments contributed to UK market sensitivity.
🇺🇸 US Business Activity
US business activity expanded at its slowest pace in 10 months.
* Weak demand and high prices weighed on momentum
* Tariffs and political uncertainty increased costs
* Factory orders declined
Confidence remains fragile despite expectations for temporary improvement.
🇩🇪 Germany Recovery Signals
Germany’s manufacturing PMI returned to expansion for the first time in over three years.
* Rising new orders and backlogs
* Services sector remains strong
* GDP growth above 1% projected for 2026
Infrastructure and military spending are supporting optimism.
🇺🇸 US GDP – Q4 2025
The US economy grew at 1.4% annualized, slowing sharply from Q3’s 4.4%.
* Growth driven by consumer spending & investment
* Government spending and exports declined
* PCE inflation rose 2.9% (2.7% core)
Growth is cooling but remains positive.
🌍 Geopolitical Risk – US & Iran
Trump warned Iran it has 10–15 days to agree to a nuclear deal or face consequences.
* US military presence strengthened
* Iran signals no compromise on nuclear rights
Regional tensions remain elevated, increasing risk-aversion.
🏢 Corporate Earnings
* Walmart beat expectations but issued cautious guidance
* Energy and industrial companies showed mixed results
Markets remain sensitive to forward guidance rather than just headline beats.
📌 Watch the full update to understand how these macro, political, and corporate developments may shape Forex, equities, commodities, and global risk sentiment.
⚠️ Disclaimer
This content is provided for educational and informational purposes only and does not constitute financial advice. Trading and investing involve risk. Always conduct your own research or consult a licensed financial professional before making investment decisions.
