News, over the long bank holiday weekend, that Trump is set to push the deadline on 50% tariffs on EU goods forward to July 9th cheered markets yesterday. This caused a rise in equities while the dollar index dipped to its lowest point since last month.
GBPUSD continued to trade higher, now at levels last seen in February 2022.
UK consumers are facing a challenging landscape as food inflation reached its peak for the year, driven by supermarkets grappling with increased operational expenses in the wake of the government's Autumn budget.
*Daily move - against G10 rates at 4:00 pm BST, 27.05.25
** Indicative rates - interbank rates at 4:00 pm BST, 27.05.25
The Japanese yen is weaker to start the day after speculation that the country may consider reducing sales of longer dated debt.
French CPI only rose to 0.7% in May, missing the expected 0.9%. As a result the EUR is marginally weaker this morning – GBPEUR continues to trade well, remaining near the highs seen at the start of April.
For the rest of the day, we have several speakers from the ECB and the Fed, as well as EU consumer confidence numbers. Current markets continue to favour our dollar buys, with current levels at the highest since February 2022.
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