UK: Weekly FX Market Update 7 April 2025

GBP

• With the UK ‘only’ receiving 10% tariffs from the US, GBPUSD traded sharply 1.3000 during last week.

• Bloomberg analysts now think there could be four rate cuts from the Federal Reserve this year, as the US economy possibly slows.

• UK GDP data is released on Friday. Could the UK economy defy the doubters and push forward?

EUR

• The Eurozone was hit with 20% tariffs from the US, and called them ‘unacceptable’.

• Ursula Von Der Leyen, European Commission President, says that she prefers to negotiate but has a ‘strong plan’ to hit back at US tariffs if needed.

• Can EURUSD continue to strengthen in the face of the ‘tariff war’?

USD

• US President Trump followed through with his tariff plans. He tells overseas investors ‘My policies will never change’.

• However, US equity markets and the USD quickly fell.

• US inflation data is released on Thursday. Will it move lower and encourage more US Dollar weakness?

Main events for this week:

Mon Apr 7

09:30 EUR Sentix Investor Confidence

Tue Apr 8

No Top Tier Data

Wed Apr 9

03:00 NZD RBNZ Interest Rate Decision

19:00 USD FOMC Meeting Minutes

Thu Apr 10

13:30 USD Consumer Price Index/Unemployment Claims

Fri Apr 11

07:00 GBP GDP/Industrial production/Manufacturing production

13:30 USD Producer Price Index

15:00 USD UoM Consumer Sentiment/Inflation Expectations