Magna Financial Market Report – Friday 4th April 2025
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• Markets profit from USD weakness ahead of payrolls
• Powell scheduled to speak today
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RECAP
Yesterday’s market session was nothing short of a rollercoaster. Stocks faced continued declines throughout the day, with only a slight recovery occurring after 4pm. Meanwhile, the US dollar weakened across the board, dropping by approximately 1% against all G10 currencies, driven by growing fears of stagflation.
The biggest winners amidst the market turbulence were the Swiss franc (CHF) and Japanese yen (JPY), both of which saw an influx of safe-haven flows. On the European front, the euro (EUR) gained ground as speculation rose around the EU’s potential countermeasures. EU trade chief Maros Sefcovic hinted that the bloc would focus on diversifying its trade partnerships globally.
The pound (GBP) experienced initial gains, but those were quickly wiped out as the market adjusted to expectations of further rate cuts from the Bank of England by the end of the year.
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OUR SUMMARY
The market remains on edge, with a prevailing risk-off sentiment still in play. Both the Japanese yen (JPY) and Swiss franc (CHF) are leading this morning, while the US dollar (USD) is attempting to regain some ground. After the recent highs, both EURUSD and GBPUSD have retreated, but with the current mood leaning toward USD selling, a disappointing jobs report this afternoon could push the dollar back to yesterday’s peaks.
Fed Chair Jerome Powell will speak today, and with the market bracing for potential rate cuts due to concerns over economic growth, his comments on tariffs will likely be closely scrutinized.
Overall, another volatile trading day is expected. Traders should remain agile, especially with recent comments from former President Donald Trump signaling openness to reducing tariffs, which could significantly influence market sentiment and trade talks.
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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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