Tuesday 18/03/2025

John Hall • March 18, 2025

Daily Update 18/03/2025

Key Headlines:

USD: Retail sales data indicates a slowdown in consumer spending.
EUR: Markets await the German ZEW economic sentiment report.
GBP: Sterling starts the week on a stable footing

Recap

US retail sales data added to concerns over slowing consumer spending. Although the figure came in at +0.2%, slightly higher than the previous reading, it fell well short of the expected +0.6%, complicating the Fed’s decision-making ahead of Wednesday’s FOMC meeting.

Markets remained largely rangebound, but volatility could increase after Israel launched its largest strike on Gaza since the ceasefire agreement. Meanwhile, tensions escalated further following an unproductive call between Trump and Putin, which may impact FX markets.

Today, focus shifts to key economic events, including the Canadian CPI report, further developments from Trump’s conversation with Putin, and Germany’s ZEW survey, expected to rise to 50.3.

Today’s Rates

Today's Interbank Rates at 09:16 am against GBP movement.

GBP>EUR – 1.1865

GBP>USD – 1.2987

EUR>GBP – 0.8427

EUR>USD – 1.0947

GBP>CAD – 1.8542

GBP>AUD – 2.0344

GBP>SEK – 13.039

GBP>AED – 4.7698

GBP>HKD – 10.089

GBP>ZAR – 23.422

GBP>CHF – 1.1423

GBP>PLN – 4.9612

Today’s Key Takeaways

Geopolitical Risks: Rising tensions in Gaza and Putin’s unrealistic land demands could drive markets toward a risk-off sentiment, boosting demand for safe-haven currencies.
Cautious Markets: Investors are likely to remain hesitant as they await key interest rate decisions midweek.
US Economic Concerns: Weak retail sales data has added to fears about the US economy, making the Fed’s upcoming decision even more critical.

18^th March 2025

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