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White House updates swing markets

Alex Hartley
Written by
Alex Hartley

Alex Hartley

OFXpert

Driven by a passion for currency markets and data movement, Alex finds great appeal in the dynamic nature of the industry.

| Monday 3 March, 2025

Daily Currency Update

Data announcements took a backseat on Friday as developments at the White House dictated the FX markets. A public address between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy ended on a sour note at the Oval office on Friday. It was expected that a deal was to be signed allowing the US greater access to Ukraine’s rare earth minerals, followed by a joint news conference, but the plan was scrapped after the heated engagement between the leaders. This has seemingly put a pause on the deal between Ukraine and US and added to uncertainty to the ceasefire between Ukraine-Russia. The news will only add weight to European woes.

GBP/USD peaked at 1.2710 Wednesday last week, but has sat lower since. The currency pair are on the rise this morning, peering over 1.2600 after testing 1.2550 on Friday. The Euro has seen a similar move, breaking 1.0500 on Wednesday last week but has since traded lower against the US dollar. The currency pair are back above 1.0400 for todays start. GBP/EUR continue to trade above 1.2100.

Key Movers

Market participants will be keeping a close eye on Washington this week, with the White House set to impose previously delayed tariffs on Mexico and Canada. The levies are due to come into effect on Tuesday, but Commerce Secretary Howard Lutnick noted that the situation around the duties remains fluid, adding that Trump will have the ultimate decision on the proposed 25% level on all items incoming from Mexico and non-energy imports from Canada. Last week, uncertainty surrounded the timing of the tariffs after Trump floated a possible April 2 deadline. However, he later reiterated the Tuesday deadline and said he would slap an additional 10% trade tax on China after placing a similarly-sized surcharge on imports from the country on February 4. FX volatility will continue into this week, with the US dollar likely to swing on the latest announcements.

Expected Ranges

  • GBP/USD: 1.2560 - 1.2690 ▲
  • GBP/EUR: 1.2080 - 1.2140 ▲
  • GBP/AUD: 2.0070 - 2.0390 ▲
  • EUR/USD: 1.0360 - 1.0480 ▲

Written by

Alex Hartley

OFXpert

Driven by a passion for currency markets and data movement, Alex finds great appeal in the dynamic nature of the industry. With over 20 years of experience, Alex works closely with businesses to understand their foreign exchange requirements and align them with solutions. Placing a strong emphasis on customer service, he takes pride in nurturing long-lasting relationships with clients.