Dear Reader,
Today's overview of economic news and market action:
- There was a strong risk-off reaction to the announcement of US tariffs last week …
- Equity markets moved sharply lower on both sides of the Atlantic …
- Bond yields declined by 20-30bps across the board …
- Oil prices fell markedly, with Brent crude back near $65 per barrel …
- Currency-wise, the dollar was under pressure, while the yen and Swiss franc moved higher …
- At the same time, the euro rose against sterling …
- This sees EUR/GBP open this morning above 85p …
- EUR/USD is north of $1.10, while GBP/USD is in the lower half of $1.29-1.30 …
- This week, tariff related news flow will remain front and centre of market attention …
- US CPI (March) and UK monthly GDP (February) will also warrant some interest …
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Today's Opening FX Rates
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% Change Day* |
End 2024 |
| EUR/USD |
1.1012 |
|
-0.67 |
6.37 |
| EUR/GBP |
0.8524 |
|
0.72 |
3.03 |
| GBP/USD |
1.2912 |
|
-1.40 |
3.21 |
| GBP/EUR |
1.1723 |
|
-0.72 |
-2.94 |
| *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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