Wednesday 5th February 2025

John Hall • February 5, 2025

Key Headline:

·       USD weakens as tariff concerns subside.

·       Markets await signs of easing US-China trade tensions.


Recap

·      USD continued to sell off, aligning with falling yields.

·      December job openings dropped to 7.6 million, below the expected 8 million.

·      Despite the decline, the job market remains strong.

·       Figures have not significantly impacted rate expectations.


Today’s Rates

Today's Interbank Rates at 10:25 am against GBP movement.

GBP>EUR – 1.2030

GBP>USD – 1.2521

EUR>GBP – 0.8311

EUR>USD – 1.0408

GBP>CAD – 1.7884

GBP>AUD – 1.9925

GBP>SEK – 13.665

GBP>CHF – 1.1293

GBP>PLN – 5.0587

GBP>AED – 4.5972

GBP>HKD – 9.7481

GBP>ZAR – 23.290

 

Today’s Key Takeaways

·       China retaliated against Trump’s tariffs by launching a probe into Google and imposing new tariffs on US goods.

·       The USD strengthened slightly on risk aversion but could face a correction if trade tensions ease.

·       Tariffs remain a key risk, with FX volatility expected to stay elevated in the coming months.

·       Today, market attention is on US JOLTS data.

·       GBP gained from its “tariff-haven” status but faces a potential risk from Thursday’s Bank of England meeting.

·       Any dovish signals from the BoE could fuel rate cut expectations, putting pressure on GBP.

 

5th February 2025


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