Managing Currency Risk

Markets remain under pressure following last week’s surprise US tariff announcement, sparking a flight to safer assets and fuelling speculation around global recession risks.

GBP has struggled in the fallout:

• GBP/EUR has dropped 2.9% since Thursday, hitting lows last seen in August 2024.
• GBP/USD has fallen 3.1% from recent 6-month highs, now trading at a 4-week low.

Meanwhile, traders have ramped up expectations for a rate cut from the Federal Reserve, with some now pricing in the possibility of a move before the next FOMC meeting on Wednesday 7th May.

This week brings a string of key US data, including inflation figures and Friday’s Consumer Sentiment Index — any signs of economic slowdown could increase pressure on the dollar and drive further market volatility.

Import and Export - Foreign Exhcange White Paper

For further advice, assistance and 121 currency healthchecks with the Chamber's foreign exchange partner Moneycorp, please click here.