Published: 30/01/2025 By ECAP

The British Pound was relatively flat, influenced by UK Chancellor Rachel Reeves’ speech outlining plans for economic growth, including the development of a "Silicon Valley" between Oxford and Cambridge and a third Heathrow runway. However, business confidence remains subdued due to tax hikes from the previous Budget. Ultimately, the Pound’s movement will largely depend on broader market trends and the upcoming Eurozone economic data.

The Euro remained steady during yesterday’s trading session ahead of the European Central Bank's interest rate decision, with a 25-basis point rate cut expected. The Euro’s direction will depend on the ECB’s forward guidance – further easing could pressure the currency, while a hawkish tone could limit losses. Investors will focus on ECB President Christine Lagarde’s remarks for clues on future policy and the Eurozone's economic outlook.

The U.S. Dollar remained steady after the Federal Reserve’s decision to keep interest rates unchanged, signalling no immediate rate cuts. The Dollar Index was supported by expectations of slower rate cuts in 2025 and ongoing tariff concerns from President Trump’s policies. Despite some market volatility, including fears over tariffs and geopolitical tensions, the Dollar's strength persisted, with analysts forecasting a firming of the currency in the near future.
Data supplied by GC Partners