Thrusday 13th February
TODAY’s RATES & MARKET NEWS
Ukraine ceasefire?
EUR Strengthens as Trump Holds 'Productive' Talks with Putin on Ukraine
UK GDP Grows, Signalling Economic Resilience
Recap
US CPI beats expectations for January, pushing treasury yields higher and leading markets to price in just one Fed rate cut for the year.
USD initially rallied but later retraced, raising questions about whether markets have exhausted fresh reasons to buy and hold the dollar.
Trump remains in focus after revealing he spoke with Putin about the dollar, energy, and Ukraine—fuelling speculation about a potential ceasefire.
Risk sentiment improved in the afternoon following Trump’s comments
Today’s Rates
Today's Interbank Rates at 10:20 am against GBP movement.
GBP>EUR – 1.1991
GBP>USD – 1.2503
EUR>GBP – 0.8338
EUR>USD – 1.0424
GBP>CAD – 1.7861
GBP>AUD – 1.9938
GBP>SEK – 13.544
GBP>CHF – 1.1337
GBP>PLN – 4.9959
GBP>AED – 4.5906
GBP>HKD – 9.7361
GBP>ZAR – 23.100
Today’s Key Takeaways
UK GDP surprised to the upside, with December growth at 0.4% (vs. 0.1% expected), bringing Q4 GDP to 0.1% (vs. -0.1% expected).
GBP reaction was muted, as growth was driven by services, while consumption and business investment fell sharply, raising concerns about underlying fundamentals.
USD FX rates consolidating, with markets seemingly seeking better entry points amid trade tariff discussions and the Fed’s cautious stance on rate cuts.
Markets pausing on tariff headlines, while Russia/Ukraine ceasefire prospects support EUR gains and improved risk sentiment may pressure USD lower.
13th February 2025
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