Magna Financial Market Report – Friday 25th April 2025
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• Markets rise on trade and tariff news
• Fed signals cuts as USD slips
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RECAP
Investor sentiment showed signs of renewed confidence, giving equities a lift despite ongoing uncertainty around tariff policy. Early in the session, U.S. officials indicated that updated tariff rates on China could be announced within the next few weeks. However, this outlook was challenged later in the day when Chinese authorities denied that any formal discussions had taken place.
Meanwhile, comments from Federal Reserve members Hammack and Waller added a dovish tone to the market. Both signaled openness to a potential rate cut in June should tariff-related pressures begin to impact employment. This stance helped boost demand for Treasuries, pushing yields downward and leading to a modest dip in the U.S. dollar.
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OUR SUMMARY
Positive sentiment carries over into the morning session, underpinned by speculation that China may ease its steep 125% tariffs on select U.S. goods. Additional momentum is being drawn from reports of potential trade agreements nearing completion with both Norway and South Korea.
The U.S. dollar is working to maintain the strength it built in the previous session, though ongoing tariff developments continue to sway trader sentiment. In the UK, retail sales figures surpassed expectations, but the pound remained largely unmoved, indicating limited market sensitivity to domestic data in the current climate.
Looking ahead, further clarity on trade negotiations will likely dictate near-term market direction, with currency movements hinging on both geopolitical developments and evolving investor risk appetite.
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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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