24th Janaury 2025

John Hall • January 24, 2025

Today's Rates & Markets

TODAY’s RATES & MARKET NEWS


Key Headline:

·       USD softens after Trump speech.

·       Trump Advocates for Rate Cuts and Eases Tariff Threats on China

·       EUR Strengthens as Markets Lower Rate Cut Expectations

 

Recap

Yesterday, Donald Trump drew the market's attention with two key statements:

1.     He revealed plans to discuss interest rate cuts with Fed Chair Jerome Powell, aiming to ease the financial strain on American households.

2.     In an interview with Fox News, he expressed a preference for avoiding tariffs on China, citing "good, friendly" conversations with President Xi Jinping.

As a result, the USD continues to soften.

 

Today’s Rates

Today's Interbank Rates at 11:45 am against GBP movement.

GBP>EUR – 1.1851

GBP>USD – 1.2428

EUR>GBP – 0.8437

EUR>USD – 1.0488

GBP>CAD – 1.7807

GBP>AUD – 1.9662

GBP>SEK – 13.572

GBP>AED – 4.5652

GBP>HKD – 9.6800

GBP>ZAR – 22.790

GBP>CHF – 1.1258

GBP>PLN – 4.9890


Today’s Key Takeaways

·       The EUR is ending the week on a strong note, bolstered by better-than-expected EU and German PMI figures.

·       While a 25bp rate cut is widely anticipated at next week’s ECB meeting, there are growing murmurs that resurgent inflation concerns could lead markets to scale back rate cut expectations. Additionally, an improving economic outlook may further support a reduction in rate-cut forecasts.

·       UK and US PMIs are due today, but the dominant narrative remains a continued softening of the USD following Trump’s comments last night.

 

24th January 2025

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