Tag Archives: USD

Pound Recovery & Trump’s Trade Policies Impact Markets
Posted on

Market Update: Pound Recovery Amid Trump’s Trade Policies

It was a light day for economic data, with no major releases impacting the markets. However, focus this week has been dominated by US politics, particularly new tariffs and trade policies introduced by President Donald Trump and his administration.

US Trade Policy and Market Impact

Overnight, Donald Trump threatened to double taxes on foreign nationals and companies, escalating tensions over discriminatory levies on US businesses. The threat, outlined in a White House memo detailing Trump’s ‘America First’ trade policy, has raised concerns about global trade relations and market stability.

Pound’s Performance and Recovery

At the start of the year, the British pound was the worst-performing major currency, following soft economic data that suggested the UK government might struggle to meet revenue targets. This led to a negative market sentiment, impacting UK bonds and pushing up government borrowing costs, which contributed to the pound’s decline.

However, recent market conditions and data suggest a potential recovery. The pound has begun to claw back some losses against both the US dollar and the euro, driven by shifting investor sentiment and broader market dynamics.

Key Data Releases Ahead

Looking ahead, markets will closely monitor the upcoming UK House Prices Index tomorrow, followed by Consumer Confidence and PMI figures on Friday. These data points will provide further insight into the UK’s economic trajectory and potential currency movements.

What This Means for You

With changing trade policies and shifting currency dynamics, staying informed is essential. If you’re looking to understand how these market trends impact your business or capitalise on currency fluctuations, our experts at Qumoney are here to help. Get in touch today for expert financial guidance tailored to your needs.

UK PMI Data Surprise as Eurozone Results Mixed and US Jobs Data Awaited
Posted on

Market Update: Market Movements Amid Trump’s Inauguration and UK Employment Data

Yesterday saw limited activity in the financial markets, with the primary focus being the inauguration of President Donald Trump. His decision to invite high-profile business leaders underscored his administration’s commitment to economic growth, private sector collaboration, and fostering innovation, job creation, and global competitiveness.

Currency Market Reactions

Contrary to market expectations, the British pound surged against the US dollar yesterday afternoon, gaining 130 points by 4 pm. This movement reflected a positive market reaction to political developments, despite ongoing uncertainties.

However, while the pound showed resilience against the dollar, it continued to face downward pressure against the euro, highlighting the complex dynamics shaping global exchange rates.

UK Employment Figures and Wage Growth

This morning, attention turned to the release of UK employment data. While projections suggested no change in the ILO Unemployment Rate, the actual figures came in at 4.4%.

Additionally, the Office for National Statistics (ONS) reported that both basic pay (excluding bonuses) and average weekly earnings grew at an annual rate of 5.6% during the three months leading up to November. This suggests real wage growth, which could influence future consumer spending and policy decisions.

Market Outlook: What’s Next?

Market movements this week are likely to be shaped by President Trump’s early days in office, as well as ongoing economic releases. The upcoming January flash PMIs for major advanced economies and further UK labour market statistics will be key data points to watch.

What This Means for You

Navigating market volatility requires strategic insights. If you want to understand how these trends affect your business or explore ways to capitalise on currency movements, our experts at Qumoney are here to help. Get in touch today for tailored financial guidance.

Pound recovery after dollar drop
Posted on

Market Update: Risk Appetite Rises Amid Inflation Data and Policy Signals

Risk appetite improved last week, driven by positive inflation data, signs of a more gradual approach to US trade tariffs, and softening market rate expectations.

Inflation and Interest Rate Expectations

The UK CPI for December came in slightly lower than expected, providing some relief to inflationary concerns. Meanwhile, in the US, core CPI fell short of forecasts, while the headline rate aligned with projections. These figures contributed to shifting market sentiment and expectations around future policy moves.

In the UK, pricing now indicates an 80% chance of a rate decrease in February, with an additional 60 basis points of easing anticipated by the end of the year. Such expectations could influence investment strategies and borrowing costs in the coming months.

Currency Movements and Market Focus

On the currency front, the US dollar lost some of its recent gains last week, reflecting changing interest rate expectations and global risk appetite.

Looking ahead, this shorter trading week in the United States will focus on key political and economic events, including President Trump’s inauguration today. Additionally, the upcoming January flash PMIs for major advanced economies and UK employment market statistics will be closely monitored for further economic insights.

What This Means for You

With shifting market dynamics and economic uncertainty, staying ahead of trends is critical. Whether you’re looking to mitigate risks or capitalise on market movements, our experts at Qumoney are here to help. Get in touch today to explore tailored financial strategies designed for success in an evolving economic landscape.

ECB interest rate cut impact on markets
Posted on

Market Update: PPI Data and UK Economic Focus Dominate the Week

The week continues with a relatively quiet start, but key economic data and political developments are set to influence markets in the coming days. Here’s what to watch.

US Producer Price Index (PPI) in Focus

This afternoon, the US Producer Price Index (PPI) is due for release, with forecasts predicting a year-on-year rise to 3.4%, up from 3%. A stronger-than-expected reading could bolster the US dollar further, as it would reflect increasing inflationary pressures, potentially shaping future Federal Reserve policy.

Key Political Week for the UK

In the UK, this is a pivotal week for Chancellor of the Exchequer Rachel Reeves, as she prepares to face scrutiny during Prime Minister’s Questions in Parliament tomorrow. The debate will likely focus on government debt and plans to address it, with options including:

  • Tax increases.
  • Reduced government spending.

Labour leader Keir Starmer has hinted at a determined approach to cutting public expenditure, adding political weight to the week’s economic discussions.

UK Economic Data: CPI, GDP, and Retail Sales

On the data front, the UK Consumer Price Index (CPI) is scheduled for release tomorrow morning, with forecasts suggesting inflation will hold steady at 2.6%. Later this week, additional key metrics, including Gross Domestic Product (GDP) figures and Retail Sales, will provide further insights into the UK economy’s health.

Currency Markets: Pound’s Mixed Performance

The pound remains under pressure, continuing its downward trend against major currencies. However, there are early signs of recovery today, with the pound gaining:

  • 40 points against the dollar.
  • 10 points against the euro.

This mixed performance reflects ongoing volatility in the foreign exchange markets, as traders assess political and economic developments.

How Could This Impact Your Business?

With significant data releases and political events on the horizon, currency markets are poised for potential volatility. Businesses should take proactive measures to hedge against risks and optimise their international transactions.

Contact Qumoney’s experts today for bespoke strategies to navigate these uncertain times and capitalise on market opportunities.

Market Update: ECB Rate Cut Anticipation Fuels Market Volatility
Posted on

Market Outlook: Inflation Reports to Set the Tone for Currency Markets

This week, all eyes are on inflation reports from the UK, US, and Eurozone, which are expected to play a critical role in shaping currency markets. As inflation remains a key driver of central bank policies, these figures will provide crucial insights into how policymakers may respond to ongoing economic challenges.

Last Week’s Highlights: USD Strength and EUR/USD Weakness

  • GBP/USD: The pair hit a 14-month low, driven by stronger-than-expected US labour market data.
    • US unemployment rate dropped to 4.1%, outperforming the forecast of 4.2%.
    • Non-farm payrolls surged to 256k, well above the expected 160k, showcasing a robust US job market and an overall strengthening economy.
  • EUR/USD: The euro continues to slide toward parity, trading at its lowest level since November 2022.
    • The euro’s decline has been fuelled by:
      • Rumoured Trump tariffs.
      • Rising concerns over the Eurozone economy.
      • A growing divergence between the Federal Reserve’s hawkish stance and the European Central Bank’s cautious approach to interest rates.

Pound Sterling Under Pressure

  • The pound remains the worst-performing G10 currency this year, reflecting a combination of weak economic data and market sentiment.
  • Markets are pinning hopes on this week’s UK inflation data to provide some relief and bolster GBP performance.

What to Watch This Week

The inflation figures from the UK, US, and Eurozone will be pivotal in determining how currencies move this week. A higher-than-expected inflation reading could prompt further rate hikes or influence policy changes, driving volatility across major currency pairs.

How Could This Impact Your Business?

Inflation-driven market volatility presents risks and opportunities for businesses with international exposure. Understanding these dynamics is critical for managing currency risks and securing favourable exchange rates.

Contact Qumoney’s experts today for tailored advice to help you navigate this volatile market and protect your financial position.

1 … 10 11 12 13 14 … 66