Day: April 14, 2025

Last week saw notable movement across the major currencies, with macroeconomic data, central bank expectations, and global trade developments driving price action. Here’s a closer look at how the GBP, EUR, and USD performed, and what to watch in the days ahead.

GBP – Pound Steadies After Early Weakness
The British pound started the week on the back foot but managed to stabilize towards the end.
UK GDP data surprised to the upside, rising by 0.5% month-over-month before any potential impact from tariffs—suggesting underlying resilience in the economy.
Looking ahead, traders will be closely watching average earnings and CPI data due this week, which could provide fresh direction for Sterling and potentially influence Bank of England expectations.

EUR – Euro Rallies Strongly
The Euro saw a sharp rebound last week, gaining around 3.5% against major counterparts.
This week, all eyes are on the European Central Bank’s policy decision on Thursday, with markets widely expecting a rate cut.
However, uncertainty remains: will the recent pause in reciprocal tariffs reduce the urgency for the ECB to ease policy further, or will they follow through regardless?

USD – Volatility Challenges Dollar’s Safe Haven Appeal
Last week was turbulent for the US Dollar, as attention swung from trade tariffs to equity markets and bond yields before returning to FX markets on Friday.
With tariffs temporarily paused and a holiday-shortened week in the US, markets may settle somewhat—though that calmness remains to be seen.
Still, persistent volatility across asset classes is raising questions about the Dollar’s reliability as a safe haven in times of stress.

The coming week promises to be pivotal, with key data releases and central bank decisions in focus. As market participants weigh the implications of recent economic surprises and geopolitical developments, currency markets may remain volatile. Traders should stay alert for sharp moves, particularly around the ECB meeting and UK inflation data.