Currency news / March 14, 2025

Markets come up for air

3 min read Lawrence Kaplin

Lawrence KaplinMarch 14, 2025

Market snapshot:

USD: Fighting back
EUR: Fiscal package in doubt
GBP: Weak GDP

Yesterday's currency recap

Yesterday’s trading session saw another turbulent day as a flurry of tariff news bombarded the markets once again, prompting ECB President Lagarde to remark that Donald Trump’s moves are causing "a level of uncertainty we haven't seen in a long time".

Early negative sentiment saw USD and equites weaken once again. Later on, following US senate democrat Chuch Schumer's reassuring comments that his party would vote to avert a government shutdown, US trading stocks caught some much-needed relief after a week of steep falls. News of a positive meeting between US and Canadian trade officials provided a further confidence boost, improving risk sentiment.

Elsewhere, the euro dipped after an official from Germany's Green party said that so far there has been no progress in negotiations around the proposed €500m fiscal package.

Sterling has started today’s session on the back foot, after UK GDP data came in weaker than forecast, with Manufacturing and Industrial output both registering unexpected steep falls as the economy continues to struggle post Chancellor Rachel Reeves' fiscally restrictive budget.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	-0.51%	2.0505
GBPCAD	-0.34%	1.8635
GBPCHF	-0.03%	1.1425
GBPDKK	-0.05%	8.9010
GBPEUR	-0.06%	1.1930
GBPJPY	0.43%	192.4000
GBPNOK	-0.17%	13.8250
GBPNZD	-0.64%	2.2590
GBPSEK	-0.01%	13.2050
GBPUSD	-0.22%	1.2925

*Daily move - against G10 rates at 7:30am, 14.03.25
** Indicative rates - interbank rates at 7:30am, 14.03.25

Key data points

Currency	Event	Period	Consensus	Previous
GBP	GDP	Jan	0.10%	0.40%
USD	Michigan Consumer Sentiment	March	63.1	64.7

What we think

Next week, market attention may well be diverted away from tariff wars and Russia-Ukraine news as we look forward to the US and UK interest rate meetings. Rates are expected to be left unchanged, but markets will be closely scrutinising the accompanying statements for further clues as to when the next cut in rates will come. Current pricing is for 2-3 rate cuts this year, starting in H2.

Read more about the Fed and BoE's interest rate decisions here:

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