Welcome to the weekly market update from IFX Payments.
Following a deadline extension for tariffs, things are currently looking up for the Eurozone. The Pound is also in a good place. The Dollar… not so much. Read on to find out more.
Current rates
| Currency pair | Rate |
|---|---|
| eur usd |
1.1345 |
| gbp eur |
1.1927 |
| gbp usd |
1.3532 |
Rates correct as of 09:30am in Monday 19th May but may now have changed.
The Big 3
Three stories covering the latest developments in economies, currencies and borders.
Renewed trade optimism gives EUR boost
Tensions have appeared to ease between EU and US around tariffs, lowering the risk tone and bolstering the euro. EUR/USD was back above the 1.1400 hurdle, opening the door to extra gains in the short-term.
Talks are accelerating with the US to strike deals on industries such as metals, automobiles, pharmaceuticals and more. This is following threats from Trump that a 50% tariff would be imposed due to slow-walking negotiations and unfair US targeting. This will now be postponed until July 9th.
All eyes on US inflation data and more this week
This week will see key US data released, including figures on inflation and consumer confidence. Dollar confidence has dipped again recently with fears over budget trends, trade uncertainty and assets moving away from US markets. The direction of movement we see at the end of the week will depend on how much inflation has increased.
[FXStreet]
Pound Sterling rises following positive sales data
Better-than-expected UK retail sales data last week has sparked increased analyst speculation that the Bank of England may cut rates, with multiple cuts now more likely than previously anticipated. Reuters reported that the futures market indicates UK rates will fall by around 38 basis points (bps) in 2025.
GBP/USD reached a 3 year high yesterday although has now corrected. It is still showing strength against most major peers given increased confidence for a more moderate monetary policy.
[FXStreet]
Recap
In last week’s edition we discussed the US ratings downgrade following a ballooning budget deficit and the strengthening of the UK/EU trade relationship, in the face of troubled relations with the US.
Looking forward
Big insights into EU and US consumer confidence this week.
Wednesday - Federal Open Market Committee (FOMC) meeting minutes released, France reports GDP, Australia reports CPI.
Thursday - US GDP, Jobs and some pre-Inflation data.
Friday - US inflation data and consumer confidence figures. German retail sales and personal consumption figures.
Here's what we're talking to our clients about
We’re always here to support. Here’s what we’re talking to clients about right now:
- Money2020! Are you going to be there?
- What changing interest rates are doing to businesses and their outlook.
- H2 planning for business costs and income.
The contents of this article do not constitute financial advice and are provided for general information purposes only.
