Thursday 09/01/2025
Daily Update 09/01/2025
Key Headline:
· UK assets experience a sell-off as risk premiums increase.
· USD strengthens following the announcement of Trump’s new tariff program.
Recap
GBP faced a significant sell-off yesterday as government borrowing costs soared, prompting markets to reassess the UK’s long-term economic outlook. Yields on 30-year gilts reached levels not seen since the turbulent 2022 Autumn budget, while 10-year yields climbed to peaks reminiscent of the 2008 financial crisis. Meanwhile, the USD strengthened broadly following reports that President-elect Trump is considering declaring a national economic emergency to implement a new tariff program. The dollar’s rally was further supported by expectations of prolonged higher interest rates, driven by the continued strength of the US economy.
Today’s Rates
Today's Interbank Rates at 09:45 am against GBP movement.
GBP>EUR – 1.1921
GBP>USD – 1.2292
EUR>GBP – 0.8390
EUR>USD – 1.0308
GBP>CAD – 1.7676
GBP>AUD – 1.9843
GBP>SEK – 13.693
GBP>AED – 4.5125
GBP>HKD – 9.5610
GBP>ZAR – 23.200
GBP>CHF – 1.1202
GBP>PLN – 5.0996
Today’s Key Takeaways
· GBP sell-off persists as traders’ factor in a risk premium due to concerns over the Government potentially breaching fiscal rules.
· GBPUSD hits its lowest level since April 2023, while GBPEUR reaches lows last seen in November 2024.
· Current market reactions draw comparisons to the UK Plc turmoil following the 2022 Autumn Budget.
· Ongoing market anxiety could extend GBP's downward trend further.
09th January 2025
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