When it comes to navigating the world of foreign exchange and international payments, knowledge is your best ally. That's why we've compiled a guide to the key dates and financial events in January 2025 to be aware of when making cross-border payments.
Whether you're a seasoned trader or just dipping your toes into the financial waters, understanding these economic indicators can make a significant impact, and allow you to make informed financial decisions.
Read on to stay informed and discover how we can empower your international financial transactions, or visit our Economic Calendar for January.
As traders slowly return to their desks to kick off the new year, focus this week will mainly be on the US ISM manufacturing PMIs to give us a gauge of how the US economy finished in 2024. November's numbers boosted economic sentiment and a repeat higher number will add to the case that the US economy remains in a stable state.
Europe and the US come into focus this week with the release of Decembers CPI numbers from Europe and the release of US job numbers. EURUSD weakened by over 7% during Q4 of 2024 as markets widened the interest rate expectations between the two economies. Therefore, a softer CPI number from Europe and a strong set of job numbers stateside will reinforce the rate divergence and we could once again see further declines in EURUSD.
Concerns about stagflation in the UK grew over December on the weakening growth outlook and still concerns that services inflation the UK remains sticky. This week, we get CPI numbers for December and November's growth number, which could well add to the stagflation argument.
US CPI numbers are also out this week. Following Decembers hawkish Federal Reserve (Fed) meeting, markets have been easing the number of rate cuts expected by the Fed in 2025 and support for USD will likely grow should we see a higher CPI print.
For GBP, focus will fall on Tuesday's job numbers and Friday's release of PMI numbers for January. These should indicate whether higher wage pressures will keep pressure on the Bank of England (BoE) and how the UK performed in the first month of the year respectively.
Similar numbers are out from the EU and the US. With the current trend favouring higher economic activity in the US, followed by the UK and then Europe.
The Bank of Japan rate decision is on the 24th, with markets pricing in a 40% chance of a hike by the bank.
Additionally, President-elect Donald Trump's inauguration is scheduled to take place the 20th and it remains to be seen, just how quick Trump will be in enforcing tariffs to Mexico and Canada, and what this will mean for the FX space.
The month ends with interest rate decisions in the US, Canada, and Europe.
At present, markets are fully expecting the European Central Bank (ECB) to cut rates by 25bp, rating the Bank of Canada (BoC) to cut by 25bp at 70% probability, and the Fed to make no cuts.
Should this pan out, then this will of course widen the rate divergence between the US and its counterparts, and if higher yields are to be seen from USD, then this will make the currency even more attractive.
Now that you're aware of the key economic events taking place in 2025, let's talk about how Equals Money can elevate your international payments experience. Our service is designed to make your life easier and transactions smoother.
In conclusion, staying informed about key economic calendar indicators, events, and dates is vital for making informed financial decisions. Whether you're monitoring GBP, EUR, or USD, these dates can significantly impact your currency exchange rates.
For the dates, events, and economic indicators that matter most to businesses, investors, and economic enthusiasts. Our Economic Calendar offers comprehensive insights into the meaningful indicators influencing market movements and FX rates across the UK, US, and EU.
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