Dear Reader,
Today's overview of economic news and market action:
- Trading conditions were relatively calm throughout the European session yesterday …
- After the European and US close, President Trump revealed the aforementioned tariff measures …
- A 10% universal tariff rate was introduced as well as a number of other country specific rates …
- The EU now faces a 20% tariff, the UK a rate of just 10%, Chinese goods will have a 34% rate applied …
- However, there seems to be a carve out for certain industries, including pharma, for now at least …
- In the aftermath of the announcement the dollar has moved sharply lower …
- This sees EUR/USD changing hands in the top half of $1.09-1.10, a new YTD high …
- GBP/USD is north of $1.31, while EUR/GBP is in the top half of 83-84p …
- Today, investors will be attentive to any retaliatory measures in response to the US tariffs …
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Today's Opening FX Rates
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% Change Day* |
End 2024 |
| EUR/USD |
1.0978 |
|
1.72 |
6.04 |
| EUR/GBP |
0.8371 |
|
0.23 |
1.18 |
| GBP/USD |
1.3107 |
|
1.47 |
4.74 |
| GBP/EUR |
1.194 |
|
-0.23 |
-1.17 |
| *versus Previous Day's European Open |
All rates quoted are indicative market rates.
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Bank of England Watch - March 2025
The March policy setting meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave the Bank rate unchanged at 4.50%. Today’s decision was very much in-line with market expectations.
US Fed Watch - March 2025
The March meeting of the US Federal Reserve Open Market Committee (FOMC) saw the central bank leave policy on hold. The target range for the Fed funds rate was maintained at 4.25-4.50%.
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