Tuesday 25/02/2025

John Hall • February 25, 2025

Daily Update 25/02/2025

Key Headline:

Tariffs on Mexico and Canada Progressing: Plans to implement tariffs on Mexico and Canada are moving forward, with potential economic impacts on both nations.
Macron-Trump Talks Signal Possible Ukraine Agreement: Discussions between French President Macron and U.S. President Trump hint at a potential diplomatic resolution regarding Ukraine.

Recap

The USD gained support yesterday after President Trump confirmed that tariffs on Canada and Mexico remain on track despite a one-month delay. The U.S. plans to impose 25% tariffs on both nations. Additionally, risk-off sentiment fueled demand for the USD as a safe haven following a decline in U.S. equities. Meanwhile, French President Emmanuel Macron met with Trump at the White House, expressing confidence that a resolution on Ukraine is within reach.

Today’s Rates

Today's Interbank Rates at 09:19 am against GBP movement.

GBP>EUR – 1.2052

GBP>USD – 1.2628

EUR>GBP – 0.8296

EUR>USD – 1.0478

GBP>CAD – 1.8000

GBP>AUD – 1.9920

GBP>SEK – 13.431

GBP>AED – 4.6363

GBP>HKD – 9.8160

GBP>ZAR – 23.216

GBP>CHF – 1.1321

GBP>PLN – 4.9796

Today’s Key Takeaways

ECB Wage Data Release: The European Central Bank publishes Q4 2024 negotiated wage rates today. A higher-than-expected figure could lead to reduced expectations for rate cuts. In Q3, wages rose 5.4% YoY, well above the ECB’s 3% target.
US Consumer Confidence: February’s consumer confidence data is due, with forecasts pointing to a third consecutive monthly decline, potentially weighing on the USD.
BoE Speaker in Focus: Bank of England Chief Economist Huw Pill is scheduled to speak, which may provide insights into the UK’s economic outlook.

Speeches

USD: Fed Barr, Barkin
EUR: ECB Centeno, Schnabel
GBP: BoE Pill

25^th February 2025

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