Wednesday 12th February

John Hall • February 12, 2025

TODAY’s RATES & MARKET NEWS

Is the USD correction set to continue?

USD weakens amid tariff retaliation threats from Europe and Canada

US CPI data in focus today

Recap

USD remains weak despite Fed Chair Powell’s testimony, which reaffirmed a patient easing approach and no rush to cut interest rates.

Market expectations point to a Fed rate cut in September, with current USD weakness appearing more like a technical pullback.

EUR shows resilience as the EU vows decisive action against potential US tariffs, with Canada echoing a strong stance.

Today’s Rates

Today's Interbank Rates at 10:50 am against GBP movement.

GBP>EUR – 1.1993

GBP>USD – 1.2441

EUR>GBP – 0.8337

EUR>USD – 1.0372

GBP>CAD – 1.7802

GBP>AUD – 1.9820

GBP>SEK – 13.543

GBP>CHF – 1.1338

GBP>PLN – 5.0056

GBP>AED – 4.5689

GBP>HKD – 9.6890

GBP>ZAR – 22.930

Today’s Key Takeaways

US CPI is the key focus for USD today, with markets expecting inflation to remain elevated due to tariff risks.

A CPI miss to the downside could have a greater impact, potentially leading markets to price in an earlier Fed rate cut before September, weakening the USD.

Stronger-than-expected CPI could push yields higher, likely boosting the USD.

Risk sentiment is slightly higher today after Donald Trump hinted at progress in Russia-Ukraine peace efforts, following the release of an American teacher from Russian detention.

GBPUSD and EURUSD are extending yesterday’s gains amid the improved risk mood.

12th February 2025

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