Key Headlines:

• USD: Growing concerns over economic slowdown weigh on the dollar.
• EUR: Gains momentum amid expectations of increased fiscal spending.
• GBP: Holds near four-month highs against the USD.

Recap

The USD faced significant losses last week, dropping over 3%—its worst weekly performance since November 2022—amid growing concerns about a slowing US economy.

Over the weekend, Trump avoided directly addressing recession fears, instead describing the current phase as a "period of transition" focused on restoring wealth to America. Further fuelling concerns, Friday’s US jobs report came in weaker than expected, with unemployment edging up to 4.1%. Fed Chair Powell provided little reassurance, stating there was no urgency to adjust interest rates and highlighting uncertainty surrounding Trump’s economic policies.

Meanwhile, the EUR recorded its strongest week in 16 years, supported by expectations of EU fiscal expansion and renewed optimism for a Russia-Ukraine peace deal.

Today’s Rates

Today's Interbank Rates at 09:40 am against GBP movement.

GBP>EUR – 1.1897

GBP>USD – 1.2903

EUR>GBP – 0.8403

EUR>USD – 1.0841

GBP>CAD – 1.8532

GBP>AUD – 2.0396

GBP>SEK – 13.031

GBP>AED – 4.7376

GBP>HKD – 10.023

GBP>ZAR – 23.626

GBP>CHF – 1.1324

GBP>PLN – 4.9747

Today’s Key Takeaways

• USD Weakness Continues: The dollar plunged over 3% last week, marking its worst performance since November 2022 amid growing concerns over a US economic slowdown.

• Trump’s Stance on Recession: Over the weekend, Trump avoided confirming recession risks, instead calling it a "period of transition" aimed at restoring wealth to America.

• Disappointing US Jobs Data: Friday’s employment report missed expectations, with unemployment rising to 4.1%, adding to fears of economic weakness.

• Fed Holds Steady: Fed Chair Powell signalled no rush to adjust interest rates, citing uncertainty around Trump administration policies.

• EUR Surge: The euro posted its strongest weekly gain in 16 years, supported by expectations of EU fiscal expansion and optimism over a Russia-Ukraine peace deal.

10^th March 2025

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