Key Headlines:

• Stronger PMI Data: Both the UK and US reported better-than-expected PMI figures, signalling resilience in economic activity.
• Sustained Dollar Strength: Demand for the US dollar remains firm as markets position ahead of quarter-end.

Recap

Stronger-than-expected US services PMI data boosted demand for the dollar yesterday, despite manufacturing slipping back into contraction. In the UK, rate cut expectations eased slightly, while European figures failed to meet forecasts. This divergence saw EUR/USD drop to a three-week low. Market sentiment remained upbeat, supported by the Trump administration’s reassurance that upcoming tariffs may be more targeted than initially feared. Meanwhile, Fed’s Bostic pushed back on rate cut expectations, signalling he foresees only one reduction this year due to slower-than-anticipated inflation progress.

Today’s Rates

Today's Interbank Rates at 09:56 am against GBP movement.

GBP>EUR – 1.1985

GBP>USD – 1.2926

EUR>GBP – 0.8352

EUR>USD – 1.0800

GBP>CAD – 1.8508

GBP>AUD – 2.0526

GBP>SEK – 12.994

GBP>AED – 4.7482

GBP>HKD – 10.051

GBP>ZAR – 23.547

GBP>CHF – 1.1423

GBP>PLN – 4.9871

Today’s Key Takeaways

• The euro starts the day weaker, with German IFO data at 9 AM potentially offering support if it exceeds expectations.
• Diplomatic efforts continue as Ukrainian and US officials meet in Saudi Arabia to negotiate a 30-day energy and Black Sea ceasefire with Russia.
• Dollar demand has picked up over the past week, driven by its lowest valuation since November.

25^th March 2025

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