Key Headline:

• GBP/USD Reaches Two-Month Highs: The pair continues its upward momentum, benefiting from USD weakness.
• EUR Under Pressure: The euro declines following the latest trade policy developments.
• Europe Faces New Tariffs: A 25% tariff on European goods has been announced, impacting market sentiment.

Recap

GBP closed the day on a strong note, with GBP/USD reaching its highest level since December 18. Market optimism was further fuelled in the afternoon after Trump confirmed that Zelenskiy will visit the US on Friday, potentially to finalise the resources deal.

Meanwhile, Trump made conflicting statements regarding tariffs on Canada and Mexico, initially insisting they would proceed as planned but later suggesting they would be delayed until April 2. Whether this was a strategic move, or an oversight remains unclear. Additionally, he announced that 25% tariffs on the European Union would take effect on April 2.

Today’s Rates

Today's Interbank Rates at 09:29 am against GBP movement.

GBP>EUR – 1.2091

GBP>USD – 1.2669

EUR>GBP – 0.8269

EUR>USD – 1.0478

GBP>CAD – 1.8151

GBP>AUD – 2.0115

GBP>SEK – 13.516

GBP>AED – 4.6534

GBP>HKD – 9.8510

GBP>ZAR – 23.378

GBP>CHF – 1.1365

GBP>PLN – 5.0044

Today’s Key Takeaways

• EUR Slightly Weaker: The euro saw only a modest decline following Trump’s tariff remarks, suggesting markets may be desensitised to tariff threats or waiting for actual implementation before reacting.
• Key Data Releases: Today’s focus includes European consumer confidence data and Q4 GDP and core PCE figures from the US, though these are not expected to significantly impact markets.
• Month-End Outlook: GBP/USD and EUR/USD are likely to hover near recent resistance levels, with the soft USD trend persisting for now.

27^th February 2025

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