Key Headline:

·        USD: Showing resilience and regaining strength

·        EUR: Uncertainty over proposed fiscal stimulus measures

·        GBP: Disappointing GDP data raises economic concerns

Recap

Yesterday’s market session was marked by volatility as another wave of tariff-related developments unsettled investors. ECB President Lagarde highlighted the growing uncertainty, stating that Trump’s actions have created instability not seen in years. Early in the session, both the USD and equities came under pressure, but sentiment improved after Senate Democrat Chuck Schumer reassured markets that his party would vote to prevent a government shutdown. Further optimism came as US and Canadian trade officials reported a constructive meeting, boosting risk appetite. Meanwhile, the euro weakened after a German Green Party official noted a lack of progress on the proposed €500m fiscal package. The pound also started the day on a weaker note, as UK GDP data disappointed, with unexpected declines in Manufacturing and Industrial output, reflecting ongoing economic struggles following Chancellor Rachel Reeves' tight fiscal policies.

Today’s Rates

Today's Interbank Rates at 10:09 am against GBP movement.

GBP>EUR – 1.1908

GBP>USD – 1.2935

EUR>GBP – 0.8400

EUR>USD – 1.0861

GBP>CAD – 1.8644

GBP>AUD – 2.0511

GBP>SEK – 13.173

GBP>AED – 4.7477

GBP>HKD – 10.051

GBP>ZAR – 23.545

GBP>CHF – 1.1439

GBP>PLN – 4.9716

Today’s Key Takeaways

·        Central Bank Focus: Markets shift attention from trade tensions and geopolitical risks to upcoming US and UK interest rate decisions.

·        Rate Expectations: No changes are anticipated, but statements will be closely analysed for hints on future cuts.

·        Outlook for Cuts: Current projections suggest 2-3 rate reductions in 2024, likely beginning in the second half of the year.

14^th of March 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.