10 February 2025
Weekly Market Headlines:
With GBP to EUR rates trading close to their highest levels since the start of the year, many are wondering, can the pound maintain its strength?
- Bank of England (BoE) Governor Andrew Bailey speaks tomorrow, potentially shaping the UK’s monetary policy for the months ahead. His comments could provide insight into future interest rate decisions and economic stability.
- With a 9-0 interest rate cut recently two members voted for a cut of 0.5% which means there is clearly an appetite for further amendments to monetary policy this year.
- Upcoming figures from the US on Wednesday could impact the dollar’s exchange rates. While former President Trump has expressed support for rate cuts, the Federal Reserve has opted to keep rates steady for now, adding uncertainty to the market.
A key moment for sterling, as the final quarter GDP figures are set to be published. With inflation still above target, weaker-than-expected growth could impact market confidence, potentially affecting exchange rates. Released alongside GDP, these figures may further influence sterling’s performance, timing could be crucial if you have a transfer to make. A strong reading could support the pound, while weaker figures may create volatility.
If you’d like to discuss what options you have to protect your budgets against currency movement, contact your dedicated account manager on +44 (0) 204 506 5672 to explore your options.
What’s happening this week?
GBP
- Thursday: GDP release & Manufacturing & Industrial Data
USD
- Wednesday: Inflation data
