Magna Financial Market Report – Friday 28th February 2025
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• EUR falls sharply due to tariff news
• GBPEUR hits fresh yearly highs
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RECAP
Yesterday, markets adopted a risk-off stance as President Trump reignited his threats of tariffs on Mexico, Canada, China, and the EU, which led to a stronger dollar.
GBPUSD pulled back from its 2025 highs, while the biggest impact was felt by the EUR, with GBPEUR reaching new highs for the year. The potential for a UK-US trade deal, especially following Starmer’s meeting with Trump, could help the UK avoid the tariff threat.
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OUR SUMMARY
The US unemployment figure came in at 242k, surpassing both the forecast and the previous number. This could influence today’s Core PCE data, scheduled for 13:30 UK time, which has the potential to reverse the dollar’s recent movements.
Looking ahead, there may be some EUR positioning ahead of next week’s ECB meeting, where a rate cut is fully anticipated. Markets are currently pricing in a 60% chance of a rate cut in April, with only a 26% probability of three cuts by the end of June.
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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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