EUR gains continued across Friday, seeing EURUSD hit fresh three-year highs, and GBPEUR hit its lowest levels since December 2023. USD recovered some of the morning's losses by the close of European trade, but US treasuries continued to sell off with the US $29 trillion market heading for its worst weekly loss since 2019.
As mentioned plenty of times last week, CHF was a very sought after currency in light of its safe haven status. This drove USDCHF to its lowest point since 2015 and GBPCHF to its lowest since 2022. Given this, some traders are anticipating an impending currency intervention by the Swiss National Bank to strategically adjust the currency's strength.
Over the weekend Trump exempted some tech goods, including smart phones and computers, from tariffs but said this would be temporary.
*Daily move - against G10 rates at 7:30am, 14.04.25
** Indicative rates - interbank rates at 7:30am, 14.04.25
As we gear up for a short week, with the UK observing Good Friday, we're set for a data-packed third week with UK domestic data in focus. Job numbers are due out on Tuesday followed by inflation numbers on Wednesday - both important to the Bank of England's easing policy. Markets are currently pricing in a 95% chance of a rate cut in May.
The ECB is widely expected to cut rates from 2.5% down to 2.25%, with markets assigning a 95% probability at the time of writing. More importantly, we will be looking out for comments from the ECB on the implications of any Trump tariffs on the economy and the bank's future easing policy.
After Trump's comments over the weekend, we are expecting details on semiconductor tariffs today. USD is starting the week weaker amidst all the uncertainty with Trump's on-and-off tariffs.
GBPUSD and EURUSD are both trading near recent highs.
Read more about Trump's tariffs here: Trump Tariffs Explained – Everything Global Businesses Need to Know
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.
Have a great day.
