20th February 2025
· President Donald Trump has indicated that a new trade agreement with China is possible.
· UK consumer confidence drops to an 11-month low in February 2025, falling three points to -37.
Recap
· GBP remained stable despite higher-than-expected headline inflation and a smaller-than-forecast rise in services inflation.
· Inflation data had minimal impact on future interest rate expectations for the UK.
· USD initially strengthened after FOMC minutes showed officials' willingness to keep rates unchanged until inflation improves.
· USD gains were short-lived, reversing after Trump hinted at a potential new trade deal with China.
Today’s Rates
Today's Interbank Rates at 10:25 am against GBP movement.
GBP>EUR – 1.2082
GBP>USD – 1.2614
EUR>GBP – 0.8275
EUR>USD – 1.0440
GBP>CAD – 1.7923
GBP>AUD – 1.9782
GBP>SEK – 13.483
GBP>CHF – 1.1379
GBP>PLN – 5.0391
GBP>AED – 4.6392
GBP>HKD – 9.8148
GBP>ZAR – 23.340
Today’s Key Takeaways
· Markets expected to remain quiet, with only jobless claims data due in the afternoon.
· USD likely to stay soft following Trump’s comments on a potential China trade deal.
· UK retail sales report tomorrow will be closely watched, given the recent drop in consumer confidence.
· British Retail Consortium survey highlights weakest consumer confidence since Labour took power, with many anticipating economic challenges ahead.
20th February 2025
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