Currency news

Tariff man strikes again

Chief Market Strategist at Equals Money
-
3
min read
Published:
March 12, 2025
  • USD: Inflation data in focus  
  • EUR: Pushes on
  • GBP: Bystander


Yesterday's currency recap

Trump headlines and news of Ukraine's willingness to accept an immediate 30-day ceasefire sent markets on a wild ride yesterday. Early in US trading hours, USD, bond yields and equities were all hit hard as Trump announced an additional 25% tariff on Canadian steel and aluminium imports.

Hours later risk assets turned around sharply on the Ukraine ceasefire headlines and the US announcing they will not increase Canadian tariffs and will hold high level trade talks with Canada on 13th March.

The rejuvenated risk appetite sent the Dollar down to new lows for the year.

The tariff wars continue this morning with the EU stating they will respond to US steel and aluminium tariffs with equal countermeasures.

Today's GBP rates

Currency pair Daily move* Indicative rate**
GBPAUD 0.03% 2.0567
GBPCAD 0.07% 1.8704
GBPCHF -0.02% 1.1403
GBPDKK 0.03% 8.8470
GBPEUR 0.02% 1.1861
GBPJPY 0.28% 191.8500
GBPNOK -0.03% 13.7890
GBPNZD -0.02% 2.2650
GBPSEK 0.08% 12.9700
GBPUSD -0.18% 1.2925


*Daily move - against
G10 rates at 7:30am, 12.03.25

** Indicative rates - interbank rates at 7:30am, 12.03.25

Key data points

Currency Event Period Consensus Previous
USD Headline Inflation Feb YoY 2.90% 3%
USD Core Inflation Feb YoY 3.20% 3.30%
USD Headline Inflation Feb MoM 0.30% 0.50%
USD Core Inflation Feb MoM 0.30% 0.40%
CAD Interest Rate Decision March 2.75% 3%

Speeches

  • ECB’s Lagarde, Lane and Nagel

What we think

Markets have been thrown around by Trump's constant on/off tariff plans but today may offer a brief respite as the market’s attention turns to macroeconomics.

Later today the US releases inflation data for February where prices are expected to have fallen slightly for the month and year. With the US interest meeting slated for next week, today’s report will be very closely scrutinised for further signs that inflation remains sticky.

See more here - When is the next Fed interest rate decision?

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