Investor confidence shifted back into risk-off territory yesterday, reversing modest gains seen midweek. This move came as global trade tensions continued to mount, fuelling concerns over a potential escalation in protectionist policies. Adding to the unease was renewed speculation about a possible US government shutdown, which further eroded appetite for risk assets.
Currency Markets Hold Steady
Currency markets remained relatively subdued, with the major pairs trading in tight ranges. The US dollar eked out marginal gains against both the euro and the pound, though movements were limited.
UK GDP Misses Expectations
This morning’s release of UK GDP figures for January painted a disappointing picture, showing a 0.1% month-on-month contraction—falling short of forecasts for a 0.1% expansion. This suggests the UK economy entered 2025 on a fragile footing, and may prompt renewed discussion around the timing and direction of future monetary policy.
Looking Ahead: US Consumer Sentiment & Tariff Developments
Later today, markets will turn their attention to US consumer sentiment data for March. With trade developments still in sharp focus, any tariff-related headlines could drive late-week volatility—particularly for businesses with significant exposure to international markets.
Stay Ahead of the Curve
If your business is exposed to currency fluctuations or international trade, it’s essential to stay informed and prepared. Speak with one of our QuMoney specialists to explore strategies for managing risk and making the most of market movements.