Key Headlines:

• ECB Rate Decision Debate – European Central Bank officials are considering whether to keep interest rates steady. Could this impact the euro’s strength?
• Tariff Announcement Incoming – The US is set to unveil new tariff measures on Wednesday at 3 PM EST. Which sectors could be most affected?
• Market Uncertainty Grows – Investors are watching closely as trade policy and central bank decisions unfold. How are you positioning yourself in response?

Recap

Markets are now less certain about an April rate cut from the European Central Bank (ECB) after a report revealed that some ECB members are still undecided. Earlier in the day, traders saw an 85% chance of a rate cut, but this has now dropped to 65%, partly due to uncertainty around US trade policies.

Meanwhile, Germany’s inflation rate fell in March as expected. Although stocks and bond yields initially dropped over concerns about upcoming US tariff announcements, they later rebounded.

Overnight, Australia’s central bank kept interest rates steady at 4.1% and emphasized its focus on controlling inflation. The Australian dollar saw a slight boost as the decision was viewed as slightly positive for the currency.

Today’s Key Takeaways

• ECB Rate Cut Uncertainty Continues – Following reports of hesitation among ECB members, today’s Eurozone CPI data could further impact April rate cut expectations. A sharper-than-expected drop in inflation may reduce the likelihood of a cut and support the euro in the short term. How do you see this affecting EUR markets?
• Key US Data in Focus – This afternoon, markets will watch the ISM Manufacturing PMI at 3 PM. With recent signs of slowing US growth, a stronger-than-expected report could boost the dollar. Will the data shift expectations for the Fed?
• Tariff Announcement Looms – Markets remain on edge ahead of tomorrow’s 3 PM Washington time announcement. Trump has hinted that US tariffs will be lower than those imposed by other nations. How will this impact global trade and currency markets?

1^st April 2025

Get in Touch!

Our team are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer guidance on the best options available to you.

P: 07441 910 897

E: FX-Admin@frank-exchange.com

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.