US consumer confidence slumped to its lowest reading since June 2024 with uncertainty surrounding the tariff policy driving expectations lower. As a result, USD retreated, settling under prior resistance levels on both GBPUSD and EURUSD.
*Daily move - against G10 rates at 7:30am, 26.02.25
** Indicative rates - interbank rates at 7:30am, 26.02.25
USD found some brief support overnight after the House passed a budget blueprint bill that will pave the way for USD 4.5 trillion in tax cuts. Market sentiment could get a boost today on reports that Ukraine is said to have agreed a deal with the US to jointly develop its natural resources, potentially paving the way for a ceasefire with Russia. President Zelenskiy is set to visit Washington on Friday to seal the deal.
Looking ahead, there's very little due out today so we expect FX rates to consolidate within recent ranges.
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