Currency news / May 23, 2025

Markets hit pause

3 min read Lawrence Kaplin

Lawrence KaplinMay 23, 2025

Market snapshot:

USD: Rising Bond Yieids
EUR: ECB uncertain over trade tariff implications
GBP: Maintaining gains

Yesterday's currency recap

Currency markets largely took a breather during yesterday's trading session as traders were starved of any fresh tariff headlines and keenly await the upcoming Senate vote on the US tax bill.

Sterling maintained its recent gains versus the US dollar, keeping it close to 3-year highs.

The euro suffered minor losses as traders reassess the increasing likelihood the European Central Bank (ECB) may well have to cut interest rates more than forecast to prevent inflation undershooting their 2% target. Euro sentiment also took a knock after data released showed Eurozone business activity unexpectedly weakened this month.

The dollar managed to eek out minor gains as traders squared up short positions ahead of the Senate vote on Trump's "Big, beautiful bill".

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	-0.06%	2.0909
GBPCAD	0.01%	1.8602
GBPCHF	-0.06%	1.1115
GBPDKK	-0.05%	8.867
GBPEUR	-0.08%	1.185
GBPJPY	-0.11%	193.03
GBPNOK	-0.14%	13.655
GBPNZD	-0.13%	2.273
GBPSEK	-0.02%	12.925
GBPUSD	0.29%	1.3455

*Daily move - against G10 rates at 4:00 pm BST, 22.05.25
** Indicative rates - interbank rates at 4:00 pm BST, 22.05.25

Key data points

Currency	Event	Period	Consensus	Previous
GBP	UK Retail Sales	April MoM	0.20%	0.40%
GBP	UK Retail Sales	April YoY	4.50%	2.60%
CAD	Canadian Retail Sales	March MoM	0.70%	0.40%
USD	New Home Sales	Apr	0.692m	0.724m

Today's speeches

ECB’s Lane and Schnabel
USD Fed’s Musalem and Schmid

What we think

Trump's trade policies continue to rile markets as uncertainty over the final destination of tariffs ramps up. As we get closer to the 90-day "reprieve" from the harsh temporary tariff levels markets are eagerly awaiting the final outcome. News that Trump’s tax bill passed trough the House had little impact as traders now await the result of the Senate vote.

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.