Magna Financial Market Report – Wednesday 5th February 2025
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• Markets are awaiting signs of a potential easing in US-China trade tensions
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RECAP
The USD experienced continued selling pressure yesterday, reflecting a dip in yields. This followed the release of December’s job openings data, which came in at 7.6 million, falling short of the anticipated 8 million. While the figures missed
expectations, they still indicate a healthy job market, and overall, they have not caused a major shift in rate expectations.
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OUR SUMMARY
This morning, China responded to Trump’s tariffs by announcing an investigation into Google and introducing new tariffs on US products. The USD saw a slight gain amid risk aversion. However, if US and China move toward de-escalating trade tensions, we could see a further correction in the USD. Despite this, tariffs
are still a potential risk, and FX volatility is expected to remain elevated in the near future. Today, the market will focus on the US JOLTS data.
GBP had a strong day, benefiting from its status as a “tariff haven.” However, Thursday’s Bank of England meeting remains a key risk for the currency. Any dovish commentary from the bank could increase bets on a rate cut, potentially
weighing on the pound.
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HOW WE CAN HELP
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com.
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