Monday 24/03/2025

John Hall • March 24, 2025

Daily Update 24/03/2025

Key Headlines:

Tariff Relief: Market concerns ease as tariff-related fears subside.
Key UK Events: A pivotal week ahead with the upcoming budget announcement and inflation data release.

Recap

Over the weekend, reports indicated that the Trump administration is shifting towards a more selective approach to tariffs, with certain countries potentially receiving exemptions. The overall scope of the tariffs is now expected to be more limited than originally proposed.

Today’s Rates

Today's Interbank Rates at 10:16 am against GBP movement.

GBP>EUR – 1.1957

GBP>USD – 1.2967

EUR>GBP – 0.8361

EUR>USD – 1.0844

GBP>CAD – 1.8575

GBP>AUD – 2.0577

GBP>SEK – 13.090

GBP>AED – 4.7624

GBP>HKD – 10.079

GBP>ZAR – 23.534

GBP>CHF – 1.1428

GBP>PLN – 5.0003

Today’s Key Takeaways

Tariff Developments: Markets are closely watching the approach of "US Liberation Day" on April 2nd, with news of more targeted tariffs improving risk sentiment.
PMI Data in Focus: Key PMI figures from Europe, the UK, and the US will be scrutinized for signs of economic strength, which could influence rate cut expectations—particularly for the ECB, where markets currently price in a 60% chance of an April cut.
Big Week for the UK: CPI data, the Spring Budget, and retail sales will shape the outlook for GBP. Inflation is expected to slow, while the budget is unlikely to deliver surprises, with the OBR set to downgrade productivity forecasts. This could make for a volatile week for sterling.

24^th March 2025

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