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Monetary policy changes that could impact the markets

27 January 2025

Weekly Market Headlines:

This week, all eyes are on the US Federal Reserve as it prepares to announce its first interest rate decision under President Trump’s leadership. The outcome, alongside any accompanying statements, could offer important clues about the Fed’s approach as 2025 unfolds. With potential impacts on the US dollar, this announcement could be a key market mover in the days ahead.

Meanwhile, on Thursday, the Eurozone will release its latest GDP figures, with expectations of 1% growth year-on-year. Any deviation from this forecast is likely to cause movement in the Euro, so if you’re planning a trade involving the single currency, it’s worth paying attention to these numbers.

The European Central Bank will also announce its latest interest rate decision on the same day, with markets anticipating another rate cut. This could further influence the euro’s performance, adding another layer of potential volatility for those trading in this currency.

Later in the week, the US will publish its own GDP data. As one of the fastest-growing economies, this release may provide further insight into why the US dollar has remained so strong against both the pound and the euro in recent months.

Whether you’re looking to capitalise on recent movements or safeguard against potential volatility, we’re here to help make the process simple and stress-free.

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?

EUR

  • Thursday: Eurozone GDP figures & European Central Bank rate announcement

USD

  • Thursday: GDP data