Daily Update 28/01/2025

John Hall • January 28, 2025

Tuesday 28/01/2025

Key Headlines:

Trump Advocates for Broad Tariffs: President Trump proposes expansive tariff measures, signalling potential trade policy shifts.
Safe Haven Buying Dominates Market: Investors shift toward safe-haven assets amid heightened market uncertainty.

Recap

Yesterday saw a surge in safe-haven buying, with JPY and CHF strengthening broadly as equities dipped following concerns over the launch of a lower-cost AI model by Chinese start-up DeepSeek. The USD also managed to recover from earlier losses.

Today’s Rates

Today's Interbank Rates at 09:45 am against GBP movement.

GBP>EUR – 1.1925

GBP>USD – 1.2449

EUR>GBP – 0.8383

EUR>USD – 1.0434

GBP>CAD – 1.7915

GBP>AUD – 1.9905

GBP>SEK – 13.690

GBP>AED – 4.5706

GBP>HKD – 9.6960

GBP>ZAR – 23.291

GBP>CHF – 1.1271

GBP>PLN – 5.0184

Today’s Key Takeaways

USD Strengthens: The dollar is up approximately 0.5% this morning following Donald Trump's overnight remarks indicating plans for "much bigger" tariffs than 2.5% across the board.
Expanded Tariff Plans: Trump announced future tariffs targeting foreign chips, pharmaceuticals, and metals, signalling a broadening trade strategy.
Risk Sentiment Declines: Tariff concerns have dampened market risk appetite, prompting a shift toward safe-haven assets.
Market Outlook: With limited data releases today, the focus is likely to remain on safe-haven buying amid ongoing tariff uncertainty.

28th January 2025

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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