Dollar still under pressure despite Trump tariff concessions
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Daily Currency Update
EUR/USD continues to trade around a three year high as uncertainty about Donald Trump's tariff agenda continues to dominate financial markets. At the weekend Trump confirmed a temporary exemption to some electrical goods, including mobile phones, being hit by the 145% levy on imports from China. Stock markets have rallied on the news and the dollar has pared some of its losses, however is still under considerable pressure. The concessions may have been driven by the bond market where the yield on US Treasuries had risen considerably on Friday, reminiscent of the rise in UK Gilts that was the main factor in Liz Truss being forced from office after her disastrous mini budget in 2022. EUR/USD is currently around 1.14 with GBP/USD back above 1.31.Key Movers
This Thursday, we have the latest interest rate decision from the European Central Bank where rates are expected to be lowered by 0.25%. Comments from ECB chief, Christine Lagarde, will be of extra interest this time given it will be her first press conference since Donald Trump implemented his global tariffs. Wednesday morning see's the latest UK inflation reading where CPI is expected to retreat from 2.8% to 2.7% y/y. Later that day we have the latest Retail Sales numbers from America which could see some dollar volatility if uncertainty about the US economy filters through to a lower-than-expected reading.Expected Ranges
- GBP/USD: 1.3110 - 1.3300 ▲
- GBP/EUR: 1.1490 - 1.1605 ▲
- GBP/AUD: 2.0700 - 2.0895 ▼
- EUR/USD: 1.1355 - 1.1500 ▲