Magna Financial Market Report – Monday 10th March 2025
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• USD: Concerns over growth intensify
• EUR: Strengthens on fiscal expansion
• GBP: Reaches 4-month highs vs USD
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RECAP
Last week, the US dollar experienced a sharp decline, falling more than 3% and registering its weakest performance since November 2022, driven by rising concerns over a potential US economic slowdown. Adding to these worries, the US monthly employment report on Friday came in below expectations, with the unemployment rate ticking up to 4.1%.
In an interview over the weekend, Trump avoided commenting on the likelihood of a recession, instead emphasizing the ongoing transition in the US economy, stating that efforts are focused on bringing wealth back to the country. Federal Reserve Chair Jerome Powell offered little comfort to the markets, indicating that there is no immediate need to adjust interest rates and that uncertainty around the economic impact of the administration’s policies remains high.
Elsewhere, the euro posted its best week in 16 years, supported by growing expectations of fiscal expansion within the EU and increasing optimism about a potential peace deal in the Russia-Ukraine conflict.
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OUR SUMMARY
In recent weeks, market volatility has surged, primarily driven by ongoing geopolitical tensions and fluctuating trade tariffs. As a result, macroeconomic factors have largely taken a back seat. However, the release of US inflation data on Wednesday is expected to be a key event, likely shaping the tone for the upcoming US interest rate decision. While no changes are anticipated for rates, the recent trend of weak US economic data has led markets to price in three rate cuts this year. This evolving landscape suggests that upcoming economic indicators will play a crucial role in guiding market sentiment and shaping future expectations.
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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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