21st February

John Hall • February 21, 2025

Key Headline:

  • GBP Support: Strong UK retail sales add to positive economic data, potentially boosting GBP.
  • EUR Weakness: Political uncertainty ahead of German elections may weigh on the euro.
  • USD will the correction continue?


Recap

·      USD Correction: Continued decline driven by optimism over a potential US-China deal and weaker US data.

·      UK Retail Sales: Surged 1.7% in January, rebounding from a 0.6% drop in December.

·      Stronger UK Data: Retail figures add to a week of robust UK economic performance, supporting GBP.


Today’s Rates

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

GBP>EUR – 1.2084

GBP>USD – 1.2653

EUR>GBP – 0.8275

EUR>USD – 1.0470

GBP>CAD – 1.7923

GBP>AUD – 1.9755

GBP>SEK – 13.468

GBP>CHF – 1.1372

GBP>PLN – 5.0377

GBP>AED – 4.6475

GBP>HKD – 9.8337

GBP>ZAR – 23.220


Today’s Key Takeaways

·       PMI Releases Today: Key manufacturing and services data from the UK, EU, and US will provide insight into economic performance.

·       USD Correction in Focus: While PMI data will impact FX, the broader market narrative revolves around how much further the USD correction can extend.

·       GBP & EUR Upside Potential: GBP/USD and EUR/USD could revisit December highs if the USD weakness continues.

·       EUR Uncertainty: Potential weakness in the euro ahead of Sunday’s German elections, as market nervousness may weigh on the currency.


21st February 2025


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