Category Archives: FX News

US-China tariff war
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Pound Slips Further as US-China Tariff War Escalates

It’s a quiet day on the economic calendar, but don’t let that fool you — market volatility is still in full swing. Currency markets remain under pressure as the US-China tariff war continues to heat up, fuelling global uncertainty and driving a sell-off in the pound.

All Eyes on the Fed Speech Tonight

While data is light today, traders will be watching closely this evening when the President of the San Francisco Federal Reserve delivers a speech. Although not a major scheduled policy event, any comments made could provide valuable insight into how one of the twelve key Federal Reserve Districts is viewing the growing impact of the Trump administration’s trade policy.

Tit-for-Tat Tariffs Rock the Markets

Market nerves remain frayed following China’s retaliatory move to impose 34% tariffs on all US imports, a direct response to last week’s dramatic US tariff announcement — also set at 34%, coinciding with what Beijing labelled ‘liberation day’.

Now, the situation is poised to escalate even further. The US has threatened to introduce an additional 50% tariff on Chinese goods from Wednesday, a move that would bring the total effective tariff rate to a staggering 104%.

Such a drastic rise in trade levies would have far-reaching implications for global supply chains, inflation, and investor confidence — not to mention the currencies caught in the crossfire.

Sterling Under Pressure Across the Board

Amid the uncertainty, the pound is struggling, declining against all major peers today. With no fresh domestic data to support it and risk sentiment firmly tilted toward caution, Sterling is feeling the full impact of global risk aversion.

Strategic Moves in Volatile Times

With markets as unpredictable as they are now, it’s more important than ever to have a clear strategy for managing currency exposure. Whether you’re looking to safeguard your international payments or take advantage of exchange rate swings, Qumoney’s FX experts are here to help.

Contact us today for market insights and tailored solutions to support your business through global turbulence.

GBP/EUR hits 8-month low
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GBP/EUR Hits 8-Month Low as Euro Surges in Turbulent Market Conditions

Sterling stumbled to fresh eight-month lows against the euro on Friday, as global markets reeled from renewed volatility and risk-off sentiment. The Euro outshone its peers across the board, capitalising on broad weakness in other major currencies — including a brief comeback by the US dollar.

Sterling Slides, Euro Dominates

The GBP/EUR exchange rate dropped by as much as 1% on Friday, dragged down by risk aversion and a resilient euro. The single currency surged even more impressively against risk-sensitive currencies like the Australian dollar, which tumbled over 4% at its lowest point.

The sharp moves reflect growing investor caution as global economic headwinds mount — from escalating trade tensions to central banks’ hawkish stances.

Could the Euro Rally Reverse?

While the euro is currently enjoying a strong run, its trajectory could be challenged in the coming days. A looming tariff confrontation between Brussels and Washington would likely dent euro sentiment and potentially give Sterling some much-needed breathing space.

As ever, politics and international relations remain a key driver in the FX markets — and traders will be closely watching for any policy announcements or rhetoric from either side.

UK GDP Report Could Be a Gamechanger

Looking ahead, all eyes will turn to the UK’s February GDP report, due later this week. Any signs that the economy has stalled could limit Sterling’s recovery potential, especially as the country grapples with persistently high interest rates and subdued business confidence.

With April’s fiscal changes on the horizon, investors are cautious about the UK’s short-term economic outlook — a factor that could keep GBP/EUR under pressure for now.

Manage Risk, Seize Opportunities

As the FX market becomes more unpredictable, having the right currency strategy is crucial for protecting your bottom line. Whether you’re hedging exposure or taking advantage of market swings, our Qumoney specialists can help you make confident decisions.

Speak to our team today to learn how to protect your international payments and turn volatility into opportunity.

Pound Falls as Recession Fears Rise Amid US Tariff Fallout
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Sterling Slips on Recession Fears as Markets Eye US Non-Farm Payrolls

Sterling continued to slide overnight, losing ground against major currencies as fears of a global recession intensified. The catalyst? Fresh tariff measures announced by President Trump, which have rattled investor confidence and reignited concerns about trade-driven economic slowdown.

GBP Drops Against Majors, Gains Elsewhere

The pound has shed around 1.5% against both the euro and the US dollar over the past 24 hours. This drop reflects a broader flight to safety among investors, with heightened demand for traditional safe-haven currencies.

Interestingly, while sterling struggles against the majors, it’s showing resilience against a basket of other currencies — including the Australian dollar and South African rand. This reflects the complex ripple effects of tariff tensions across different economies.

European Data Already in Focus

Earlier today, key economic indicators from Europe were released:

  • German Manufacturing figures
  • French Industrial Production data

Both metrics offer a snapshot of Europe’s industrial health at a time when global trade disruptions loom large.

All Eyes on US Non-Farm Payrolls

Attention now shifts to the US Non-Farm Payrolls, due at 1:30pm (UK time). This highly anticipated report is expected to show a decline in job creation — yet given recent volatility in forecasts vs actual outcomes, markets are braced for a potential surprise.

Should the data beat or miss expectations significantly, we could see renewed swings in both currency and equity markets. This is especially true as traders weigh up the growing risk of a US recession triggered by the ongoing tariff war.

Why This Matters for Businesses

Market movements like these can create both risks and opportunities for international businesses. Exchange rate shifts can impact everything from supplier payments to overseas income — and in a volatile environment, timing and strategy are everything.

Qumoney’s FX experts are here to help. Whether you’re looking to hedge risk or seize favourable currency rates, we offer tailored solutions to support your global operations.

Contact us today for a one-on-one discussion about how to navigate market uncertainty with confidence.

Global Markets Hold Steady as Trump Announces New Tariffs
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Markets Hold Steady as New US Tariffs Spark Global Trade Concerns

Trading remained relatively subdued across European markets yesterday as investors held their breath in anticipation of a major policy move from the White House. The long-awaited announcement came after market hours, with President Trump unveiling a raft of new tariff measures aimed at key US trading partners.

Markets in Wait-and-See Mode

With little in the way of fresh economic data during the session, FX markets saw low volatility. Major currency pairs, including EUR/USD and GBP/USD, drifted within tight trading ranges. While the US dollar faced mild downward pressure, there was little momentum for a breakout in either direction.

New Tariffs Unveiled Post-Close

Once European and US markets had closed for the day, the Trump administration revealed the details of its latest tariff strategy:

  • A flat 10% universal tariff was implemented.
  • Country-specific rates added another layer of complexity:
    • EU exports to the US now face a 20% tariff.
    • UK goods are subject to a 10% rate.
    • Chinese imports will be hit hardest, with a significant 34% tariff.

This aggressive trade policy signals a renewed focus on protectionism, setting the stage for potential retaliation and uncertainty in the global trade landscape.

What to Watch Next

Investors will now be closely watching how global markets react to this escalation in trade tensions. Any retaliatory measures from affected nations could drive significant volatility, particularly in currency markets.

On the economic calendar, several key events are expected to influence trading sentiment:

  • ECB March meeting minutes will provide insight into the central bank’s monetary policy direction.
  • In the US, the spotlight is on:
    • ISM Non-Manufacturing PMI (March) – a key indicator of economic health.
    • Weekly Initial Jobless Claims – offering a snapshot of labour market strength.

Navigating Market Uncertainty

With geopolitical risks mounting and policy changes driving volatility, businesses and investors should remain agile. Our currency experts at Qumoney are here to help you interpret market movements and capitalise on opportunities as they arise.

Get in touch with us today to discuss tailored strategies for your international payments and currency risk management.

US data and EU-US trade impact on FX
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Market Outlook: US Data in Focus as Lagarde Prepares Key Address

Today’s attention turns to the United States, with the release of two major economic indicators this afternoon—Factory Orders and the ADP National Employment Report. Both will provide valuable insight into the strength of the US economy as markets assess the potential direction of Federal Reserve policy.

Quiet Day for UK and EU Data

There are no scheduled data releases from the UK or Eurozone today, but markets will hear from several ECB officials throughout the day. The most anticipated event comes this evening, when ECB President Christine Lagarde addresses the European Council.

Lagarde to Speak on Transatlantic Trade Tensions

Lagarde’s remarks are expected to focus on EU-US relations, particularly the potential economic fallout from any new US tariffs on European goods. Her comments could influence euro sentiment and shape broader market expectations for EU trade policy.

Sterling Holds Firm—For Now

The pound remains on a bullish footing, supported by recent economic data and market confidence. However, the outlook could shift quickly if the US moves to impose tariffs on the UK, a scenario that may test sterling’s resilience in the coming days.

Plan Ahead in Volatile Times

As global trade tensions resurface and key data is released, staying informed is essential. Connect with a QuMoney expert to navigate the evolving landscape and optimise your international payment strategy.

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