Friday 28/02/2025

John Hall • February 28, 2025

Daily Update 28/02/2025

Key Headline:

EUR declines sharply following tariff announcement.
GBP/EUR climbs to its highest level of the year.

Recap

Market sentiment turned risk-averse yesterday as Trump renewed his tariff threats against Mexico, Canada, China, and the EU, driving the USD higher. While GBP/USD retreated from its 2025 peak, the euro took the biggest hit, pushing GBP/EUR to its highest level this year. Meanwhile, speculation is growing around Starmer’s meeting with Trump, which could pave the way for a UK trade deal and potentially sidestep the looming tariff risks.

Today’s Rates

Today's Interbank Rates at 10:02 am against GBP movement.

GBP>EUR – 1.2115

GBP>USD – 1.2595

EUR>GBP – 0.8255

EUR>USD – 1.0394

GBP>CAD – 1.8181

GBP>AUD – 2.0264

GBP>SEK – 13.536

GBP>AED – 4.6238

GBP>HKD – 9.7950

GBP>ZAR – 23.312

GBP>CHF – 1.1357

GBP>PLN – 5.0338

Today’s Key Takeaways

US Jobless Claims Rise: Unemployment figures came in higher than expected at 242k, surpassing both forecasts and previous readings.
Core PCE in Focus: Scheduled for release at 13:30 UK time, this key inflation measure could influence USD direction and potentially reverse yesterday’s moves.
EUR Positioning Ahead of ECB: With a rate cut fully priced in for next week’s ECB meeting, markets are currently assigning a 60% probability of an April cut and only a 26% chance of three cuts by June’s end

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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