ChamberFX Weekly Brief
Keep up-to-date on foreign exchange developments and news with our ChamberFX weekly briefs and monthly newsletters. These valuable insights are provided by Damon Ellam, International Payments UK, MoneyCorp. Damon is our regional representative and will be providing useful monthly FX forecasts to help chamber members with their currency strategies.
JANUARY 2025
"Happy New Year and welcome to my January Newsletter, I hope you find it useful.
2024 Recap:
2024, a year marked by monetary policy uncertainty and heightened geopolitical tensions. Major central banks delivered expected rate cuts, albeit the easing was much less than expected at the beginning of the year.
On the Geopolitical front, major events such as numerous elections and rising tensions in the middle east, didn’t affect the global economy like the war in Ukraine did in 2022.
Key Themes for 2025:
- Geopolitical Tensions: Ongoing conflicts in the Middle East and Ukraine, and US-China trade tensions are expected to continue influencing global markets.
- Central Bank Policies: Major banks (Fed, ECB, BoE, BoJ) will balance inflation control with growth.
- Economic Divergence: Countries' economic policies and performance will lead to some currencies outperforming others.
- Political Developments: Key political events include:
- January 20th: Donald Trump sworn in as the 47th US President.
- February 23rd: German federal election.
- October 20th: Canadian federal election.
Current Trends:
- USD: Strengthening due to risk aversion, CNN reported yesterday that Donald Trump is considering declaring a national economic emergency to allow for a new tariff program, reviving concerns over an aggressive tariff policy stoking inflation.
- EUR: Expected to weaken, possibly reaching parity against USD.
- GBP: Declining due to UK bond market sell-off and public finance concerns.
As a result, GBP has moved to its lowest level in fourteen months vs. USD and two-month lows against the EUR.
Thanks,
Damon"
Weekly FX Briefs
Contact
For further information and advice on Hull & Humber's ChamberFX, or for assistance with your currency strategy, please click here or contact Lorraine Holt at l.holt@hull-humber-chamber.co.uk or call 01482 324976.
Service delivered by Hull & Humber Chamber of Commerce in partnership with TTT Moneycorp Limited.
TTT Moneycorp Limited is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.
