Currency markets remained relatively stable yesterday due to limited data releases. This trend is expected to persist today, with only one significant data release scheduled in the United States this afternoon.
US Durable Goods Data & Interest Rate Decision
The primary focus today will be the release of US Durable Goods data, with analysts expecting a 0.8% rebound, following last month’s -1.1% decline.
Looking ahead, tomorrow’s US interest rate announcement will be a critical market event, marking the first Federal Reserve decision under Donald Trump’s second term as president. Trump has openly expressed his desire for immediate rate cuts, but such an outcome is considered unlikely. The decision and its broader economic implications will be a key storyline to watch in 2025.
ECB Policy Outlook & Currency Market Movements
On Thursday, attention will shift to the European Central Bank (ECB). Analysts predict the ECB will adopt a more aggressive stance on monetary policy this year, potentially cutting rates by up to 150 basis points. This move reflects the ECB’s commitment to supporting economic growth in the region.
Despite global uncertainties, the British pound has maintained its strength against the US dollar, holding on to last Friday’s gains. Additionally, the GBP/EUR exchange rate is showing signs of recovery, moving closer to last year’s average levels.
What This Means for You
As key economic events unfold, understanding currency movements is crucial. If you’re looking to manage risk or capitalise on market trends, our experts at Qumoney are here to help. Get in touch today for tailored financial insights and strategies.