Magna Financial Market Report –January 8th 2025
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• USD up on strong US data, Fed cut pushed to July
• EU CPI in line, inflation worries remain
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RECAP
The USD regained some ground lost on Monday following stronger-than anticipated economic data. US job openings surged to a six-month peak, and the ISM services index showed better-than-expected growth, signalling robust economic expansion.
However, the “prices paid” component of the ISM report was notably high, suggesting that inflationary pressures could be resurfacing. In response, markets have adjusted their expectations for the Federal Reserve’s first rate cut of 2025, now projected for July.
Meanwhile, in the European Union, consumer price index (CPI) data met forecasts, rising to 2.4%.
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OUR SUMMARY
The upcoming economic releases include EU inflation data, specifically the Producer Price Index (PPI), along with US job market updates, featuring weekly jobless claims and ADP payroll figures. The USD’s recent gains are expected to persist, driven by similar data points reinforcing the trend.
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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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