Today, all eyes are on the European Central Bank (ECB) as it announces its latest interest rate decision. Market consensus anticipates a 0.25% rate cut, a move expected to take immediate effect as part of the ECB’s ongoing adjustments to monetary policy.
Following the announcement, attention will turn to ECB President Christine Lagarde’s speech. Her insights into the economic outlook for 2025, particularly regarding potential further rate cuts, will be critical in shaping market sentiment.
Economic Data to Watch
- United States PPI Figures: Across the Atlantic, the Producer Price Index (PPI) is expected to rise to 2.6%, up from last month’s 2.4%. This uptick could influence expectations for Federal Reserve policy, as markets assess its impact on inflation.
- UK GDP Report: Tomorrow, the UK’s Gross Domestic Product (GDP) report takes centre stage. Analysts forecast modest growth of 0.1%, which, if confirmed, would officially ease recession concerns for the UK economy.
Currency Market Update
Sterling continues to demonstrate resilience, trading near eight-year highs against the euro. Against the US dollar, the pound has also maintained steady gains over the past fortnight, reflecting sustained market confidence in the currency.
How This Impacts Your Business
As central bank decisions and key economic data shape market dynamics, currency volatility creates both risks and opportunities. Whether you’re seeking to hedge against adverse movements or leverage favourable trends, understanding these developments is essential.
At Qumoney, our experts are here to provide tailored insights to help your business navigate market shifts effectively. Contact us today for strategies designed to optimise your foreign exchange approach.