The GBP/USD pair continues its descent, reflecting a weakening Pound. The Bank of England's cautious stance on rate cuts, combined with BoE Governor Andrew Bailey's dovish remarks last week, keeps Sterling under pressure, limiting any upside potential for the pair. On the USD front, bets around the Fed's upcoming interest rate cut have buoyed the USD. Additionally, escalating geopolitical tensions in the Middle East and the disappointment over China's stimulus could further support the USD. Traders are securing their positions by refraining from making any significant bets as they await today's FOMC meeting minutes. The upcoming week's release of these minutes, along with the US Consumer Price Index (CPI), and Producer Price Index (PPI), will be key drivers for the GBP/USD pair.

EUR/USD Muted Ahead of FOMC Minutes and US Inflation Data

The EUR/USD pair is trading in a narrow range near 1.0950, influenced by a strong US Dollar. The upbeat US Nonfarm Payrolls (NFP) report for September has alleviated concerns regarding economic slowdown, dampening market expectations for a 50 basis point (bp) Federal Reserve rate cut in November. Rising geopolitical tensions in the Middle East and oil price dynamics have sweetened the Greenback's appeal as a safe-haven currency. In the Eurozone, the European Central Bank (ECB) is set to make another rate call next week. ECB policymaker and Governor of the Greek Central Bank, Yannis Stournaras, suggested two more rate cuts in each remaining meeting this year as inflation continues to decline. Today's FOMC Minutes will provide a fresh insight for the pair. Apart from this FOMC, the US CPI and PPI data will likely trigger the US Dollar, further influencing the EUR/USD pair.

AUD/USD Declines Following Disappointing China Stimulus

The AUD/USD pair continues its downward momentum to near 0.6740, pressured by a stronger US Dollar. Comments from the National Development and Reform Commission press conference, coupled with disappointment over additional China stimulus measures, could exert some selling pressure on the China-proxy Australian Dollar (AUD). Tuesday's RBA September Meeting Minutes noted that the board is considering different scenarios for adjusting interest rates depending on inflation trends. Further remarks from RBA Deputy Governor Andrew Hause indicated that future rate decisions will be closely tied to inflation data. On the USD front, today's Federal Open Market Committee (FOMC) Minutes will likely shape broader market sentiment, affecting the AUD/USD's movements.

NZD/USD Subdued as RBNZ Cuts Interest Rate by 50 bps

The NZD/USD pair continues to decline near 0.6135, marking a seven-week low. The Reserve Bank of New Zealand's (RBNZ) decision to lower the Official Cash Rate (OCR) by 50 basis points (bps) from 5.25% to 4.75% during its October meeting has weighed heavily on the Kiwi. This, coupled with disappointing news around China's stimulus measures, has negatively impacted the China-proxy NZD, keeping the currency under pressure. In the absence of significant economic data from New Zealand, today's FOMC Minutes and broader market sentiment are likely to guide the pair's performance.

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