Key Headline:

·       USD weakens as tariff concerns subside.

·       Markets await signs of easing US-China trade tensions.

Recap

·      USD continued to sell off, aligning with falling yields.

·      December job openings dropped to 7.6 million, below the expected 8 million.

·      Despite the decline, the job market remains strong.

·       Figures have not significantly impacted rate expectations.

Today’s Rates

Today's Interbank Rates at 10:25 am against GBP movement.

GBP>EUR – 1.2030

GBP>USD – 1.2521

EUR>GBP – 0.8311

EUR>USD – 1.0408

GBP>CAD – 1.7884

GBP>AUD – 1.9925

GBP>SEK – 13.665

GBP>CHF – 1.1293

GBP>PLN – 5.0587

GBP>AED – 4.5972

GBP>HKD – 9.7481

GBP>ZAR – 23.290

Today’s Key Takeaways

·       China retaliated against Trump’s tariffs by launching a probe into Google and imposing new tariffs on US goods.

·       The USD strengthened slightly on risk aversion but could face a correction if trade tensions ease.

·       Tariffs remain a key risk, with FX volatility expected to stay elevated in the coming months.

·       Today, market attention is on US JOLTS data.

·       GBP gained from its “tariff-haven” status but faces a potential risk from Thursday’s Bank of England meeting.

·       Any dovish signals from the BoE could fuel rate cut expectations, putting pressure on GBP.

5th February 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.