Welcome to the latest edition of the IFX Market Report.
The laws of world trade have been upended. And yet the story didn’t stop there. Last week held more surprises. What does this week have in store? Read on to find out.
Current rates
| Currency pair | Rate |
|---|---|
| eur usd | 1.1390% |
| gbp eur | 1.1550% |
| gbp usd | 1.3160% |
Rates correct as at 8.34am on Monday 14 April but may have now changed
The Big 3
Three stories covering the latest developments in economies, currencies and borders
Euro reaches its strongest level in three years
In the wake of economic uncertainty and a reassessment of the dollar's traditional role as haven, the euro has reached its strongest level in three years. Traders are betting on a move to $1.20 and strategists are updating their forecasts.
Trump downplays smartphone exemption
The announcement of exemptions from the 125% tariffs on Chinese exports of certain electronic goods, including smartphones was a victory for Apple and other manufacturers who rely on Chinese manufacturing. However, a Trump social media post on Sunday indicated this would be temporary and that a special tariff rate would be announced in due course.
UK economy grows by faster-than-expected 0.5% in February
This is larger than the 0.1% that City economists had forecast and includes growth across all sectors of the British economy. However, it could be the last month of expansion before the impact of the US president’s global trade war.
Recap
What happened last week…
The major story last week was the pause on non-retaliatory tariffs for everyone… except China. The 10% tariff still stands but every other country now has 90 days of breathing room. China on the other hand is stuck with a 145% tariff, including a pre-existing 20% tariff. In response, China imposed levies of 34% on US goods, before increasing it to 84% and then 125%. This took effect on Saturday.
Barring this tit for tat, the reprieve allows some space for rationale and gave a much-needed boost to markets. The saga is far from over.
Looking forward
The big moments to track this week.
Tuesday: UK employment and change data, EU bank lending survey.
Wednesday: China GDP, UK Producer Price Index, Retail Price Index, US Retail Sales, Fed Chairman Jerome Powell speech.
Thursday: ECB Monetary policy committee and speech.
Here's what we're talking to our clients about
We're always in dialogue with our clients about what's best for them. Here's a sneak peek at some of the conversations we're having and how we're supporting.
- Q2 budget planning.
- Soothing volatility risk from tariffs in international trade.
- Potential headwinds in US/UK/EU to doing business.
The contents of this article do not constitute financial advice and are provided for general information purposes only.