Currency news / January 8, 2025

Markets push out Fed rate cuts to 2H of 2025

3 min read Thanim Islam

Thanim IslamJanuary 8, 2025

Market snapshot:

USD gains as data shows momentum behind economy

Yesterday's currency recap

USD clawed back some of the losses from Monday after US job openings rose to a six-month high, and ISM services came in stronger than expected thus pointing to solid expansion in the economy.

The prices paid element of the ISM services number came in remarkably high, indicating the threat of inflation rearing its head again. As a result, markets have now rescheduled the first Federal Reserve (Fed) rate cut of the year to July.

Earlier in the day, EU CPI numbers came in-line with expectations, rising to 2.4%.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	-0.16%	2.0010
GBPCAD	-0.19%	1.7912
GBPCHF	0.14%	1.1341
GBPDKK	0.00%	8.9876
GBPEUR	0.00%	1.2048
GBPJPY	-0.06%	197.2420
GBPNOK	0.14%	14.1602
GBPNZD	-0.18%	2.2146
GBPSEK	0.14%	13.8553
GBPUSD	-0.15%	1.2502

*Daily move - against G10rates at 7:30am, 08.01.25
** Indicative rates - interbank rates at 7:30am, 08.01.25

Key data points

Currency	Event	Period	Consensus	Previous
EUR	Consumer Confidence	Dec		-14.50
EUR	PPI MoM	Nov	1.50%	0.40%
EUR	PPI YoY	Nov	-1.40%	-3.20%
USD	ADP Employment Change	Dec	140,000	146,000
USD	Initial Jobless Claims	Jan 4	215,000	211,000
USD	Fed Minutes	Dec 18

What we think

We've got another round of EU inflation numbers in the form of PPI and job numbers from the US with the release of the weekly jobless claims and the ADP payroll numbers.

USD gains are continuing from yesterday and similar data points will likely see this continue.

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