Currency news / January 21, 2025

Day one of Trump begins

3 min read Thanim Islam

Thanim IslamJanuary 21, 2025

Market snapshot:

Trump eventually announces tariff talks

Yesterday's currency recap

USD fell sharply yesterday afternoon after the Wall Street Journal reported that President Trump will fall short of imposing new tariffs on his first day in the office. Instead, he is set to issue a plan that will direct federal agencies to look at current trade policies and US trade relationships. Both GBPUSD and EURUSD climbed by 1% as a result.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	-0.05%	1.9645
GBPCAD	0.01%	1.7617
GBPCHF	0.30%	1.1169
GBPDKK	-0.18%	8.8242
GBPEUR	-0.18%	1.1828
GBPJPY	0.64%	190.4040
GBPNOK	-0.10%	13.9177
GBPNZD	-0.30%	2.1736
GBPSEK	-0.30%	13.5780
GBPUSD	1.00%	1.2301

*Daily move - against G10rates at 7:30am, 21.01.25
** Indicative rates - interbank rates at 7:30am, 21.01.25

Key data points

Currency	Event	Period	Consensus	Previous
EUR	ZEW Survey	Jan		17.00%
CAD	CPI MoM	Dec	-0.40%	0.00%
CAD	CPI YoY	Dec	1.80%	1.90%

What we think

The sell-off on USD yesterday has been reversed in part this morning after Trump announced he expects to raise 25% tariffs on Canada and Mexico by 1st February. Unsurprisingly both CAD and MXN are under pressure this morning. Anticipate dynamic shifts in the USD this week, as Trump’s tariff announcements unfold, but overall markets remain positioned for a strong USD over the medium term.

UK job numbers this morning were uneventful. Unemployment rate rose as expected to 4.4%, and weekly earnings excluding bonus rose by 5.6%, surpassing the 5.5% forecast. As a result, GBP moves are muted. On the data front, the latest ZEW survey from Germany and Europe are due out today. These will help us gauge whether there has been an uptick in economic sentiment. Then in the afternoon Canadian CPI numbers.

As mentioned above, any Trump headlines could be the key driver of market movements.

We specialise in currency guidance

Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.

Have a great day.