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Magna Financial Market Report – Wednesday 4th June 2025
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• USD rebounds on strong JOLTS and rising yields
• Trump’s tariff hike takes effect; markets unfazed
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RECAP
The U.S. dollar rebounded on Tuesday, supported by an upside surprise in the JOLTS data, indicating continued strength in labor demand for April. Fed official Raphael Bostic emphasized a patient approach to monetary policy, reinforcing expectations of a prolonged rate hold. U.S. Treasury yields rose alongside renewed dollar demand.
Earlier in the session, Eurozone CPI came in below expectations at 1.9%, weighing on the euro across the board.
In the Asia-Pacific region, Australia’s Q1 GDP growth disappointed, coming in at 0.2% versus the forecasted 0.4%. The GBPAUD pair remains elevated in response.
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SUMMARY
Trump’s decision to double tariffs on steel and aluminium to 50% takes effect today. While the UK has secured an exemption, the move has had little impact on sterling, which remains steady. Earlier this morning, Trump described President Xi as “very tough and extremely hard to deal with,” though markets showed little reaction to the comment.
Attention now turns to a fresh round of U.S. economic data, expected to offer insight into how the economy is holding up amid ongoing trade tensions. It’s been a volatile week for data—weak manufacturing figures were offset by stronger-than-expected JOLTS numbers, leading to a choppy performance for the dollar.
Later today, markets will be watching the release of the Fed’s Beige Book for further clues on regional economic conditions. Meanwhile, the Bank of Canada is widely expected to keep rates steady at 2.75%, with policymakers likely to offer guidance on the potential economic impact of U.S. trade policy.
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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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