It’s a quiet start to the week, with only EU Consumer Confidence data on the calendar today. But beneath the surface, markets remain alert as the focus shifts to a busy midweek schedule and the evolving US-China trade narrative.
Key Data Ahead This Week
- Tuesday: PMI figures for the UK and EU, expected to provide insights into economic momentum across both regions.
- Thursday:
- German business sentiment survey, a vital gauge for Europe’s largest economy.
- US Durable Goods Orders, offering a read on American manufacturing and broader economic resilience.
These data points could trigger fresh volatility in the FX markets, especially as central banks continue to weigh inflation risks against slowing growth.
Sterling Pushes Higher Over Easter
Over the Easter weekend, the pound gained ground against the dollar, bouncing back from earlier lows triggered by the US President’s recent tariff announcements. The move marks a steady recovery for Sterling, while the US dollar plunged to a three-year low — wiping trillions off US stock valuations in the process.
Trade Talks Offer a Glimmer of Optimism
President Trump has hinted that a US-China trade agreement could be finalised within the next three to four weeks, a statement that may offer some temporary support for the dollar and ease market jitters.
However, these remarks come against a backdrop of ongoing political uncertainty. Questions over the fate of Federal Reserve Chair Jerome Powell and concerns around the Fed’s independence are creating additional headwinds for the greenback.
What It Means for Your Business
With Sterling rising and the dollar under pressure, now could be an opportune moment to review your USD exposure or take advantage of favourable GBP/USD rates. As always, unexpected data or policy shifts can spark rapid currency swings.
Qumoney’s FX experts are ready to help you plan ahead and protect your international payments in today’s unpredictable environment.
Speak to us today for tailored advice and real-time market insight.