Magna Financial Market Report – Wednesday 9th July 2025

9 July 2025

 

MARKET REPORT

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MARKET OVERVIEW

The USD’s safe-haven appeal weakened as aggressive tariff measures rattled global markets. Copper surged to record highs after a 50% import tariff, while threats of steep levies on pharmaceuticals and EU goods fueled trade uncertainty. Investors remain cautious as the impact of these policies unfolds.

GBP

GBP struggled under renewed selling pressure as concerns mounted over the UK’s fiscal outlook. A sharp climb in gilt yields amplified investor anxiety, following a government policy reversal on welfare reforms. Adding to the gloom, the Office for Budget Responsibility flagged growing threats to economic stability and highlighted the precarious state of Britain’s public finances.

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USD

Markets stayed focused on trade tensions amid a lack of key economic data. The US confirmed tariffs would take effect on August 1 with no grace period, prompting the EU to warn of counter-tariffs. Beijing also cautioned Washington against reigniting trade disputes, threatening retaliation against nations helping the US bypass Chinese supply chains.

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EUR

The EUR held firm as the EU avoided US tariffs, though concerns over its strength and slowing inflation kept markets cautious. The European Central Bank’s cautious stance leaves the currency sensitive to global risk and trade headlines.

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AUD

The AUD gained ground across the board after the Reserve Bank of Australia surprised markets by holding interest rates steady. The unexpected decision supported a broad rally in the currency, as traders pared back expectations for imminent easing.

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TODAY

SUMMARY

The USD’s safe-haven status weakened further as escalating tariffs fueled global trade tensions. Copper prices soared to record highs, posting their largest one-day gain after Washington imposed a 50% import tariff. The administration signaled plans to target up to 20 additional countries and floated steep tariffs on pharmaceuticals, while warning the EU of punitive measures if trade talks falter

The EUR held firm, supported by the EU’s exclusion from the latest US tariffs, but a stronger currency and subdued inflation keep the ECB cautious. Analysts expect EUR/USD to remain range-bound in the near term, with potential gains if USD weakness persists. 

Meanwhile, GBP slipped as rising gilt yields and concerns over the UK’s fiscal position weighed on sentiment, with forecasts pointing to modest downside risks for GBP unless fiscal clarity improves.

HOW WE CAN HELP

Our experienced currency team is here to ensure you make the most of your international transfers. By gaining a clear understanding of your goals, we offer personalised support and recommend the most suitable strategies to help you navigate the currency market with confidence. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com

Magna Financial

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