Key Headline:

·       GBP: Bank of England's interest rate decision

·       USD: Federal Reserve keeps rates unchanged, lowers growth forecast.

·       EUR: Anticipating tomorrow's vote on stimulus package approval.

Recap

·      GBP/USD: The pair remained stagnant yesterday ahead of the Fed meeting. Although the Fed held rates steady as expected, it failed to provide clear direction for the currency.

·      Fed Decision: The Federal Reserve lowered its growth forecasts and raised inflation projections, reigniting concerns that interest rates may stay high for longer, sparking new recession fears.

·      Eurozone: Germany’s approval of a major infrastructure fund is supporting the Euro, which recovered after a brief dip.

Today’s Rates

Today's Interbank Rates at 10:55 am against GBP movement.

GBP>EUR – 1.1938

GBP>USD – 1.2950

EUR>GBP – 0.8376

EUR>USD – 1.0847

GBP>CAD – 1.8618

GBP>AUD – 2.0519

GBP>SEK – 13.191

GBP>CHF – 1.1424

GBP>PLN – 5.0053

GBP>AED – 4.7553

GBP>HKD – 10.063

GBP>ZAR – 23.750

Today’s Key Takeaways

·       Bank of England: Today’s key event is the BoE’s rate decision, with no change expected. The decision is likely to keep the Pound stable. Tomorrow’s UK retail sales data could influence GBP if the figures disappoint.

·       Eurozone: Consumer confidence in the Eurozone is expected to weaken, which could pressure the Euro. Despite this, the Euro remains a safe haven, while the dollar’s direction is uncertain due to inflation and growth concerns.

·       US Economy: Donald Trump’s tariffs and significant cuts to government spending are expected to impact the economy. The Fed projects a 1.7% GDP growth this year and a 2.7% rise in inflation, a shift from December’s forecasts of 2.1% growth and lower inflation. Despite a small recovery yesterday, tariffs continue to weigh on US equities and the dollar.

·       US Initial Job Claims: The upcoming initial job claims report will be crucial for assessing market strength.

20 March 2025

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