UK: Weekly FX Market Update 10 February 2025

GBP

• Sterling had a rollercoaster of a week, buffeted by both US tariff volatility and Bank of England dovish rate cuts.

• UK GDP data is released on Thursday. Will it show the UK economy flatlining again?

• Is the possibility of UK stagflation increasing? If so, could GBPUSD head towards 1.2000?

EUR

• President Trump has been brazen in stating that tariffs on the Eurozone will happen.

• When will they arrive, how big will they be, and will they be deferred for a month like those for Canada & Mexico?

• Eurozone Flash GDP data is released on Friday. Will the Eurozone economy take a step forward or flatline like Q3?

USD

• With President Trump bringing unpredictability to global trade, the US Dollar has fluctuated.

• However, the US economy continues to outperform and attract investors.

• US CPI on Wednesday could be the data highlight of the week. Will annual CPI stay steady at 2.9% or will it squeeze higher again and encourage continued US Dollar buying?

Main events for this week:

Mon Feb 10

09:30 EUR Sentix Investor Confidence

Tue Feb 11

00:01 GBP BRC Retail Sales

12:15 GBP BoE Gov Bailey Speaks

13:50 USD FOMC Hammack Speaks

20:30 USD FOMC Williams Speaks

Wed Feb 12

13:30 USD CPI

15:00 GBP MPC Greene Speaks

15:00 USD Fed Chair Powell Testifies

17:00 EUR BUBA President Nagel Speaks

17:00 USD FOMC Bostic Speaks

Thu Feb 13

07:00 GBP GDP/Goods Trade Balance/Industrial Production/Prelim Business Inv

10:00 EUR EU Economic Forecasts/Industrial Production

13:30 USD PPI/Unemployment Claims

17:00 EUR BUBA President Nagel Speaks

Fri Feb 14

10:00 EUR Flash GDP

13:30 USD Retail Sales

14:15 USD Industrial Production

15:00 USD Business Inventories