20th February 2025

John Hall • February 20, 2025

Key Headline:

·       President Donald Trump has indicated that a new trade agreement with China is possible.

·       UK consumer confidence drops to an 11-month low in February 2025, falling three points to -37.


Recap

·      GBP remained stable despite higher-than-expected headline inflation and a smaller-than-forecast rise in services inflation.

·      Inflation data had minimal impact on future interest rate expectations for the UK.

·      USD initially strengthened after FOMC minutes showed officials' willingness to keep rates unchanged until inflation improves.

·      USD gains were short-lived, reversing after Trump hinted at a potential new trade deal with China.


Today’s Rates

Today's Interbank Rates at 10:25 am against GBP movement.

GBP>EUR – 1.2082

GBP>USD – 1.2614

EUR>GBP – 0.8275

EUR>USD – 1.0440

GBP>CAD – 1.7923

GBP>AUD – 1.9782

GBP>SEK – 13.483

GBP>CHF – 1.1379

GBP>PLN – 5.0391

GBP>AED – 4.6392

GBP>HKD – 9.8148

GBP>ZAR – 23.340

 

Today’s Key Takeaways

·       Markets expected to remain quiet, with only jobless claims data due in the afternoon.

·       USD likely to stay soft following Trump’s comments on a potential China trade deal.

·       UK retail sales report tomorrow will be closely watched, given the recent drop in consumer confidence.

·       British Retail Consortium survey highlights weakest consumer confidence since Labour took power, with many anticipating economic challenges ahead.

 

20th February 2025


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