USD losses continued yesterday, with traders concerned over global trade and potentially positioning themselves for further weakness on the greenback. Time will tell but it seems that for confidence in USD to return, confidence in US treasuries needs to renew first.
GBP performed well across the G10 ahead of this morning's job data and Wednesday's inflation numbers.
*Daily move - against G10 rates at 7:30am, 15.04.25
** Indicative rates - interbank rates at 7:30am, 15.04.25
USD continues to be on the back foot after Donald Trump pushed ahead with plans to impose tariffs on semiconductor and pharmaceutical imports by initiating trade probes that will continue to increase the prospect of a trade war.
GBP is relatively unmoved after job numbers were mixed. There were signs of a slower momentum in wage growth (5.9% versus a 6% forecast) and the unemployment rate remained at 4.4%. Based on this, there is a risk that the Bank of England may have to move faster. Nonetheless, market pricing continues to suggest that the bank will cut rates by 25bp every quarter until the end of the year.
The EUR has opened up weaker this morning with GBPEUR finding support, and rebounding December 2023 lows.
Read more about Trump's tariffs here: Trump Tariffs Explained – Everything Global Businesses Need to Know
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