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.