Soft Inflation, Firm Policy — And Markets Wait for the Break

Author

FX Rocket Profits
November 20, 2025

In partnership with

Sterling Softens, Fed Holds & Market Waits

Midweek trading was marked by hesitation as investors weighed softer UK inflation and the latest Fed minutes. Sterling slipped after CPI undershot expectations, reinforcing bets that the Bank of England could cut rates in December. The pound’s weakness highlights how quickly sentiment shifts when inflation cools faster than policymakers anticipate.

Across the Atlantic, the Fed’s October minutes leaned hawkish, with members signaling comfort in holding rates higher for longer. That stance lifted U.S. yields and kept the dollar supported, even as equities drifted sideways and gold held near $3,980.

The theme? When inflation cools abroad and policy holds firm at home, currencies diverge — and patience pays.

⚡Daily Broad Market Recap – November 19, 2025

  • S&P 500 flat; Nasdaq edged down 0.2%.

  • Gold steady near $3,980; oil slipped to $59.20.

  • Bitcoin hovered near $100,000; USD firm.

🔥Sterling Slips on Soft UK Inflation

  • CPI undershot forecasts, reinforcing December BoE cut bets.

  • GBP weakened across majors.

  • Market eyes BoE guidance for confirmation.

📊Fed Minutes Signal Higher-for-Longer Rates

  • XAU/USD retesting $3,950 triangle support.

  • Bounce could target $4,050; break may lead to $3,850.

  • Watch for compression breakout signals.

This issue blends softer UK inflation with steady Fed resolve. As sterling slips and the dollar holds, the message is clear: divergence defines opportunity, and patience defines execution.

Happy Trading!

Your career will thank you.

Over 4 million professionals start their day with Morning Brew—because business news doesn’t have to be boring.

Each daily email breaks down the biggest stories in business, tech, and finance with clarity, wit, and relevance—so you're not just informed, you're actually interested.

Whether you’re leading meetings or just trying to keep up, Morning Brew helps you talk the talk without digging through social media or jargon-packed articles. And odds are, it’s already sitting in your coworker’s inbox—so you’ll have plenty to chat about.

It’s 100% free and takes less than 15 seconds to sign up, so try it today and see how Morning Brew is transforming business media for the better.