Volatility, Cuts, and Politics: My Take on the Markets This Week

Hello everyone! I hope you're all having a great day out there because the markets are definitely keeping things interesting.

It’s Friday, and that means tighter liquidity as market makers wrap up the week. In Australia, the markets officially close on Saturday morning and reopen Monday—so we're technically ahead of the game time-wise.

This morning, the Bank of England cut rates by 25 basis points from 4.5% to 4.25%, just as expected. What stood out, though, is that out of the nine central bank members, two voted to hold and seven voted to cut. That’s about 22% favouring a pause—small, but worth noting. It reminds me of how things play out with the Fed: majority rules.

Right after that, Trump’s “big” announcement turned out to be a trade deal with the UK—which had already been leaked. Honestly, it’s more political theatre than economic impact. US-UK trade flows are already steady. No structural change here, just optics.

From my view, the US dollar’s current strength feels a bit hollow. I’m still positive on gold and the euro, I see weakness on USD, and see opportunity in pound trades. Inflation is still sticky, there’s no Fed pivot in sight—even if growth slows—and now we’re seeing geopolitical and tariff risks back on the radar.

So let’s keep perspective. Markets may react in the short term, but fundamentals haven’t changed much. Gold remains a strong contender in the markets as a hedge on uncertainty and tariff risk.

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