24 March 2025
Weekly Market Headlines:
This week, key events like the UK Spring Statement, inflation data, and U.S. GDP & PCE figures could drive FX volatility.
Highlights Last Week:
USD:
- Fed’s Rate Decision: The Federal Reserve held rates steady at 4.25%-4.50%, reflecting a cautious approach amid economic uncertainties.
- Retail Sales Miss: U.S. retail sales grew by only 0.2%, missing the 0.6% forecast, which put downward pressure on the dollar.
- Tariff Flexibility: Trump’s hints at flexibility with tariffs helped reduce trade war concerns, stabilizing the USD.
GBP:
- BoE’s Rate Decision: The Bank of England kept rates at 4.5%, despite speculation about a possible cut, maintaining a steady stance amidst ongoing economic challenges.
- Market Reaction: The lack of significant movement in the GBP reflected market caution due to economic uncertainty in the UK.
EUR:
- ECB Stance: No major policy changes from the European Central Bank, as they continue to monitor inflation and economic conditions.
- Weak German Data: Poor economic performance in Germany, the Eurozone’s largest economy, limited the euro’s growth prospects.
Upcoming data releases this week:
USD:
- Consumer Confidence Index (March 25): The Conference Board’s Consumer Confidence Index will provide insights into consumer sentiment amid declining confidence levels.
- Durable Goods Orders (March 26): Data on durable goods orders will indicate business investment trends and economic momentum.
- Gross Domestic Product (March 27): The final GDP figures for the previous quarter will be released, shedding light on the overall economic performance.
- Personal Consumption Expenditures (PCE) Index (March 28): The February PCE index, a key inflation measure, will be released, providing insights into consumer spending and price trends.
GBP:
- Spring Statement (March 26): Chancellor Rachel Reeves will deliver the Spring Statement, expected to address public finances, economic growth, and the cost-of-living crisis.
- Inflation Data (March 26): February’s Consumer Price Index (CPI) figures will be released, with expectations of a slight decline to 2.9% from 3%. This data will provide insights into inflation trends and potential impacts on monetary policy.
- Retail Sales Data (March 28): The latest retail sales figures will offer insights into consumer spending and economic health.
EUR:
- German Preliminary CPI (March 28): Germany’s initial Consumer Price Index data for March will be released, offering insights into inflation trends within the Eurozone’s largest economy.
How we can help you:
At Lumon, we help businesses manage downside risk in foreign exchange markets while providing the flexibility to benefit from favorable rate movements.
To discuss how we can support your business, please contact your dedicated currency specialist on +44 (0) 203 384 7280 to discuss solutions tailored to your needs.
