Currency news / May 27, 2025

Markets buoyed on EU tariff delays

3 min read Thanim Islam

Thanim IslamMay 27, 2025

Market snapshot:

GBPUSD trades at highest since February 2022
UK food inflation at a 1-year high

Currency recap

News, over the long bank holiday weekend, that Trump is set to push the deadline on 50% tariffs on EU goods forward to July 9th cheered markets yesterday. This caused a rise in equities while the dollar index dipped to its lowest point since last month.

GBPUSD continued to trade higher, now at levels last seen in February 2022.

UK consumers are facing a challenging landscape as food inflation reached its peak for the year, driven by supermarkets grappling with increased operational expenses in the wake of the government's Autumn budget.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	0.13%	2.094
GBPCAD	-0.03%	1.862
GBPCHF	0.04%	1.1139
GBPDKK	0.05%	8.888
GBPEUR	0.05%	1.1919
GBPJPY	0.34%	194.405
GBPNOK	0.06%	13.6989
GBPNZD	0.22%	2.2657
GBPSEK	0.09%	12.9148
GBPUSD	-0.06%	1.3549

*Daily move - against G10 rates at 4:00 pm BST, 27.05.25
** Indicative rates - interbank rates at 4:00 pm BST, 27.05.25

Key data points

Currency	Event	Period	Consensus	Previous
EUR	Consumer Confidence	May		-15.20

Today's speeches

EUR: ECB Villeroy, Nagel and Schlegel
USD: Kashkari and Barki

What we think

The Japanese yen is weaker to start the day after speculation that the country may consider reducing sales of longer dated debt.

French CPI only rose to 0.7% in May, missing the expected 0.9%. As a result the EUR is marginally weaker this morning – GBPEUR continues to trade well, remaining near the highs seen at the start of April.

For the rest of the day, we have several speakers from the ECB and the Fed, as well as EU consumer confidence numbers. Current markets continue to favour our dollar buys, with current levels at the highest since February 2022.

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