17 February 2025
Weekly Market Headlines:
Political tensions remain high as Keir Starmer suggests the possibility of deploying troops to Ukraine if the situation escalates. Meanwhile, discussions between the US and Russia are set to begin on Tuesday in Saudi Arabia, aiming to negotiate an end to the ongoing conflict. Any developments could impact market sentiment and, in turn, exchange rates.
The UK will release its latest unemployment figures tomorrow, with expectations at 4.5%. A result outside this forecast could drive volatility for sterling, which may affect your currency transfers.
A key market focus this week is UK inflation data, due on Wednesday, as it plays a crucial role in shaping interest rate decisions. If inflation deviates from expectations, it could shift predictions around the Bank of England’s next move, potentially impacting exchange rates.
On Wednesday, the Federal Reserve will release its latest FOMC minutes, providing insight into US monetary policy. Given recent political changes, markets will be watching closely for any signals that could influence the strength of the US dollar.
To close the week, UK retail sales data is set for release on Friday, with expectations of a 0.3% monthly increase. A stronger-than-expected result could boost the pound, while weaker figures may add pressure on sterling.
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
- Tuesday: Unemployment figures
- Wednesday: Inflation data
- Friday: Retail sales data
USD
- Wednesday: Federal Reserve will release FOMC minutes
