Key Headline:

USD Consolidates Amid Tariff Delays: Delays in implementing tariffs have led to a period of consolidation for the USD. Markets are cautiously monitoring developments for further direction.

Recap

By the close of trading, markets were mostly flat despite earlier USD weakness that pushed EURUSD to new year-to-date highs for 2025. The general sentiment is that the current lull in USD activity represents a "calm before the storm," as tariff actions are believed to be temporarily delayed. This leaves room for a continued USD correction in the coming weeks, following the currency's strong performance over the last 3–4 months. Key upcoming dates include February 1, when Trump is expected to announce tariffs on Canada, Mexico, and China, and April 1, the deadline for the US Commerce Department's review of trade deficits.

Today’s Rates

Today's Interbank Rates at 08:47 am against GBP movement.

GBP>EUR – 1.1830

GBP>USD – 1.2295

EUR>GBP – 0.8453

EUR>USD – 1.0393

GBP>CAD – 1.7696

GBP>AUD – 1.9645

GBP>SEK – 13.570

GBP>AED – 4.5155

GBP>HKD – 9.5770

GBP>ZAR – 22.817

GBP>CHF – 1.1158

GBP>PLN – 4.9946
 

Today’s Key Takeaways

Quiet Day for Data:

• Only jobless claims numbers are scheduled for release this afternoon.

Focus on USD Trends:

• Markets are closely watching whether the tactical USD correction continues as relief over delayed tariffs lingers.
• Longer-term outlook for USD remains positive due to the stronger US economy, favourable rate differentials, and expectations of USD-supportive Trump policies.

Upcoming Data to Watch:

• PMI numbers set for release tomorrow will provide insights into January's economic activity and help assess the relative strength of the US, EU, and UK economies.

23rd January 2025

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.