Tag Archives: USD

It’s a quiet day on the economic calendar, but don’t let that fool you — market volatility is still in full swing. Currency markets remain under pressure as the US-China tariff war continues to heat up, fuelling global uncertainty and driving a sell-off in the pound.

All Eyes on the Fed Speech Tonight

While data is light today, traders will be watching closely this evening when the President of the San Francisco Federal Reserve delivers a speech. Although not a major scheduled policy event, any comments made could provide valuable insight into how one of the twelve key Federal Reserve Districts is viewing the growing impact of the Trump administration’s trade policy.

Tit-for-Tat Tariffs Rock the Markets

Market nerves remain frayed following China’s retaliatory move to impose 34% tariffs on all US imports, a direct response to last week’s dramatic US tariff announcement — also set at 34%, coinciding with what Beijing labelled ‘liberation day’.

Now, the situation is poised to escalate even further. The US has threatened to introduce an additional 50% tariff on Chinese goods from Wednesday, a move that would bring the total effective tariff rate to a staggering 104%.

Such a drastic rise in trade levies would have far-reaching implications for global supply chains, inflation, and investor confidence — not to mention the currencies caught in the crossfire.

Sterling Under Pressure Across the Board

Amid the uncertainty, the pound is struggling, declining against all major peers today. With no fresh domestic data to support it and risk sentiment firmly tilted toward caution, Sterling is feeling the full impact of global risk aversion.

Strategic Moves in Volatile Times

With markets as unpredictable as they are now, it’s more important than ever to have a clear strategy for managing currency exposure. Whether you’re looking to safeguard your international payments or take advantage of exchange rate swings, Qumoney’s FX experts are here to help.

Contact us today for market insights and tailored solutions to support your business through global turbulence.

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.

Trading remained relatively subdued across European markets yesterday as investors held their breath in anticipation of a major policy move from the White House. The long-awaited announcement came after market hours, with President Trump unveiling a raft of new tariff measures aimed at key US trading partners.

Markets in Wait-and-See Mode

With little in the way of fresh economic data during the session, FX markets saw low volatility. Major currency pairs, including EUR/USD and GBP/USD, drifted within tight trading ranges. While the US dollar faced mild downward pressure, there was little momentum for a breakout in either direction.

New Tariffs Unveiled Post-Close

Once European and US markets had closed for the day, the Trump administration revealed the details of its latest tariff strategy:

• A flat 10% universal tariff was implemented.
• Country-specific rates added another layer of complexity:
  • EU exports to the US now face a 20% tariff.
  • UK goods are subject to a 10% rate.
  • Chinese imports will be hit hardest, with a significant 34% tariff.

This aggressive trade policy signals a renewed focus on protectionism, setting the stage for potential retaliation and uncertainty in the global trade landscape.

What to Watch Next

Investors will now be closely watching how global markets react to this escalation in trade tensions. Any retaliatory measures from affected nations could drive significant volatility, particularly in currency markets.

On the economic calendar, several key events are expected to influence trading sentiment:

• ECB March meeting minutes will provide insight into the central bank’s monetary policy direction.
• In the US, the spotlight is on:
  • ISM Non-Manufacturing PMI (March) – a key indicator of economic health.
  • Weekly Initial Jobless Claims – offering a snapshot of labour market strength.

Navigating Market Uncertainty

With geopolitical risks mounting and policy changes driving volatility, businesses and investors should remain agile. Our currency experts at Qumoney are here to help you interpret market movements and capitalise on opportunities as they arise.

Get in touch with us today to discuss tailored strategies for your international payments and currency risk management.

This morning’s German Import and Retail Sales figures both exceeded expectations, indicating some resilience in Europe’s largest economy. However, the upbeat data failed to lift the euro, which continues to struggle for traction amid broader market caution.

Focus Shifts to UK Consumer Lending Data

Next on the schedule is the UK’s Consumer Lending report, which includes figures on mortgage approvals, household lending, and consumer credit. These indicators will offer a snapshot of domestic demand and borrowing trends heading into Q2.

German Inflation in Focus This Afternoon

Later in the day, attention will turn back to Germany with the release of CPI inflation data—an important reading ahead of the upcoming ECB policy discussions. A higher-than-expected print could revive euro support, while a soft number may add further pressure.

Stay Ahead of Market Shifts

With key data influencing currency movements, now is the time to stay proactive. Speak to a QuMoney specialist for bespoke insights and risk management strategies to support your international transactions.