Market Report : 24.01.2025

Published: 24/01/2025 By ECAP


The British Pound struggled against major currencies yesterday, weighed down by concerns over the UK's fiscal health following unexpectedly high borrowing figures. With no new economic data to drive direction, the Pound struggled to gain momentum, leaving it vulnerable to market sentiment. Ultimately, Investor interest remained limited, and the currency had difficulty recovering from recent losses, keeping its performance subdued in the absence of fresh developments.


The Euro struggled against most of its peers yesterday, weighed down by speculation that the European Central Bank may accelerate interest rate cuts. In fact, ECB policymaker Yannis Stournaras suggested that more rate cuts could be needed if tariffs are imposed on the Eurozone by the US. With a lack of economic data from the Eurozone, the Euro remained under pressure, struggling to gain momentum.


The U.S. Dollar extended losses after President Trump called for immediate interest rate cuts and signalled no blanket import tariffs. His comments may pressure the Federal Reserve to adopt a more dovish stance, though market expectations only show one rate cut for 2025. Ultimately, Trump's remarks, alongside his push for lower global oil prices, suggest a potential weakening of the Dollar as inflation decreases and tariffs remain more targeted.

Data supplied by GC Partners