Dear Reader,
Today's overview of economic news and market action
- The ECB cut its key interest rates by 25bps yesterday …
- The market reaction to the ECB meeting outcome was somewhat muted …
- Currency-wise, the main pairs continued to operate in narrow trading ranges …
- The dollar firmed overnight amid US tariff threats on Canada/Mexico …
- This sees EUR/USD opens this morning down at $1.04 …
- GBP/USD is in the lower half of $1.24-1.25 …
- EUR/GBP remains in the top half of the 83-84p corridor …
- Today, the main release of note will be US core-PCE inflation (Dec) …
Continue Reading
|
|
|
|
Today's Opening FX Rates
| |
|
|
% Change Day* |
End 2024 |
| EUR/USD |
1.0399 |
|
-0.21 |
0.44 |
| EUR/GBP |
0.8367 |
|
-0.01 |
1.14 |
| GBP/USD |
1.2425 |
|
-0.15 |
-0.69 |
| GBP/EUR |
1.1946 |
|
0.01 |
-1.12 |
| *versus Previous Day's European Open |
All rates quoted are indicative market rates.
|
|
|
|
ECB Watch: January 2025
ECB cuts again, with another cut on the cards for March
The first ECB Governing Council policy setting meeting of 2025 saw the central bank cut interest rates. It reduced them by 25bps, with the Deposit rate lowered to 2.75%, while the Re-fi rate was decreased to 2.90%. This marked the fifth 25bps rate cut since the ECB commenced its easing cycle in June of last year. Today’s decision by the ECB to cut rates was unanimous.
View PDF
|
|
|
FED Watch: January 2025
Fed in no hurry to cut rates
The first meeting of the US Federal Reserve Open Market Committee (FOMC) for 2025 saw the central bank leave policy on hold. The target range for the Fed funds rate was maintained at 4.25-4.50%. The decision by the FOMC to leave rates unchanged was unanimous and very much in line with market expectations. This was the first time in four meetings that the Fed did not cut interest rates, having previously reduced rates by 100bps over the course of its last three meetings in 2024.
View PDF
|
|
|
|
|
|
|
