Dear Reader,
Today's overview of economic news and market action:
- There was a cautious tone to investor sentiment yesterday, amid the ongoing escalation of tensions in the Middle East …
- Some disappointing US data also provided an unhelpful backdrop for risk appetite …
- Against this backdrop, the dollar was holding a somewhat firmer tone …
- At the same time, sterling was under some downward pressure …
- As trading gets underway this morning, this sees GBP/USD open in the lower half of $1.34-1.35 …
- Meantime, EUR/USD is down at the $1.15 threshold …
- EUR/GBP is up at the midpoint of the 85-86p band …
- Today, the main focus will be on the Fed FOMC monetary policy decision (after the European close) …
- No changes to rates are expected, so the focus will be on the updated projections and the post-meeting press conference …
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Today's Opening FX Rates
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% Change Day* |
End 2024 |
| EUR/USD |
1.1502 |
|
-0.50 |
11.10 |
| EUR/GBP |
0.8554 |
|
0.46 |
3.40 |
| GBP/USD |
1.3439 |
|
-0.97 |
7.42 |
| GBP/EUR |
1.1683 |
|
0.29 |
-3.29 |
| *versus Previous Day's European Open |
All rates quoted are indicative market rates.
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ECB Watch:June 2025
The ECB's governing council meeting for June saw the central bank lower interest rates for a fourth consecutive time this year. It's once again reducing them by 25bps, With the deposit rate lowered to 2.00%., while the Re-fi rate was decreased to 2.15%. This Marked the eight 25bps rate cut since the ECB started its easing cycle in June 2024.
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