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Magna Financial Market Report – Wednesday 14th May 2025
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Dollar drops on soft CPI and fading tariff hopes
German CPI steady; focus shifts to Fed speakers
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RECAP
A softer-than-expected U.S. CPI print led to a broad decline in the dollar yesterday, reversing some of the gains recorded on Monday. Despite this, money markets continue to price in two rate cuts by the Federal Reserve this year, although both Goldman Sachs and Barclays anticipate only one cut.
Meanwhile, after this morning’s UK labor market data indicated a slowdown in wage growth, the pound experienced a mixed performance throughout the day.
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OUR SUMMARY
Markets have regained a sense of stability this morning following yesterday s dollar sell-off prompted by the U.S. CPI release.
Today s final German CPI figures have been published, though they are not expected to significantly impact the euro.
Attention now turns to commentary from a number of central bank officials, with particular focus on remarks from Fed Governor Waller. Barring any unexpected tariff-related developments, we anticipate continued dollar softness in line with yesterday s trend little clarity.
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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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