Hubpay FX Weekly Report – February 3rd, 2025
Overview of Report:
The global currency market was significantly impacted this week as US President Donald Trump’s newly imposed tariffs sent shockwaves through international trade. The US Dollar surged, approaching two-year highs, while currencies like the Euro, South African Rand, and Canadian Dollar took a hit. With increased trade tensions, the report highlights the ongoing volatility in currency markets across key regions and the potential long-term effects of these economic shifts.
Key Points:
US Dollar (USD): Surged 2%, reaching a 1.096 index value, driven by President Trump’s 25% tariffs on Mexico and Canada, and a 10% tariff on Chinese imports. Expectations for Federal Reserve interest rate cuts were scaled back, with traders now predicting around 41 basis points of easing in 2025.
Renminbi (CNY): Appreciated by 0.1%, trading at 7.24, despite the imposition of new tariffs.
Japanese Yen (JPY): Strengthened by 0.35%, trading at 154.85, amid growing expectations of continued interest rate hikes by the Bank of Japan.
Australian Dollar (AUD): Slumped 2.86%, reaching a five-year low of 0.61, amid rising global trade concerns.
领英推荐
Indian Rupee (INR): Fell to an all-time low of 87.27, weakening by 1.25%, as global tariffs weighed on emerging market currencies.
Nigerian Naira (NGN): Strengthened by 4.5%, driven by improved market liquidity after foreign exchange adjustments.
South African Rand (ZAR): Weakened by 1.15%, impacted by Trump’s tariff comments and concerns over trade disruptions.
Sterling (GBP): Dropped 0.6%, closing at 1.239, amid rising trade tensions and speculation about further rate cuts from the Bank of England.
Euro (EUR): Fell 1% against the USD, reaching 1.035, with market expectations adjusting to a potential ECB deposit rate cut by December 2025.
Stay ahead of currency market developments and understand the shifts that could affect your business operations. Get the full report to dive deeper into regional performance and trends: wearehubpay.com