Tuesday 14/01/2025

John Hall • January 14, 2025

Daily Update 14/01/2025

Key Headline:

Reports from Trump's economic team have led to a weaker USD.
Market reactions highlight a shift in sentiment following the updates.

Recap

GBP saw broad declines, influenced by weekend statements from Rachel Reeves and Keir Starmer, with Labour reaffirming its commitment to existing fiscal plans. Meanwhile, USD strengthened for a fifth straight day, supported by rising Treasury yields ahead of Wednesday's anticipated CPI data.

Today’s Rates

Today's Interbank Rates at 09:56 am against GBP movement.

GBP>EUR – 1.1872

GBP>USD – 1.2181

EUR>GBP – 0.8425

EUR>USD – 1.0259

GBP>CAD – 1.7508

GBP>AUD – 1.9679

GBP>SEK – 13.750

GBP>AED – 4.4715

GBP>HKD – 9.4840

GBP>ZAR – 23.113

GBP>CHF – 1.1154

GBP>PLN – 5.0719

Today’s Key Takeaways

USD weakened last night and continues to do so this morning amid reports that President-elect Trump’s economic team is considering a phased tariff implementation to boost trade negotiation leverage while managing inflation risks.
Market speculation suggests USD strength since October may have been overextended, prompting some traders to take profits.
A denial or comment from Trump could reverse this trend and reignite USD buying. Markets remain on edge awaiting further developments.

14th January 2025

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