Markets, Currency Swings & Business Confidence: What to Watch This Week

Pay iO Pulse – Monday 3rd March 2025

It’s been a volatile weekend. After a tense meeting between Trump and Zelensky, geopolitical concerns have heightened, sending shockwaves through markets?and fuelling uncertainty in global trade. Meanwhile, the UK economy shows signs of resilience, with business confidence rising - but FX volatility remains a major challenge for companies operating internationally.

Here’s what should be on your radar this week:

1. Currency Markets on Edge: Why Businesses Need a Strategy Now

With tensions mounting in Ukraine and uncertainty in US foreign policy, the US dollar has strengthened again, squeezing companies that rely on international payments.

• FX Volatility is Rising?– The dollar's strength is hitting businesses with exposure to USD-denominated costs and contracts.
• More Businesses are Hedging?– Corporate treasurers are turning to the options market?to neutralise currency risks and protect margins

If your business operates internationally, now is the time to review FX strategies. Forward contracts and multi-currency accounts can help stabilise cash flow?and protect profits?from swings in exchange rates.

2. Business Confidence is Rebounding in the UK – What That Means for Growth

Despite recent economic pressures, UK business confidence has hit a six-month high, driven by resilient consumer spending?and strong hiring trends.

• 73% of business leaders report optimism about future growth.
• More firms plan to invest in international expansion.
• Government initiatives to support small businesses are accelerating.

Now is a prime moment to evaluate growth opportunities, expand into new markets, and optimise financial strategies to take advantage of emerging economic stability.

3. International Women’s Day: Female Leadership on the Rise

A new UK government report?highlights record numbers of female business leaders, yet challenges remain in accessing investment?and breaking into senior finance roles.

??Women now hold 40% of board seats in FTSE 100 firms.

?? Female-led businesses contribute over ￡85bn to the UK economy annually.

?? Yet only 2% of venture capital goes to women-led startups.

Access to better financial tools and payment solutions is essential for driving business success, no matter the founder’s background. Fintech is playing a key role in levelling the playing field.

What to Do Now

• Hedge Your FX Exposure:?Review multi-currency solutions to protect against market swings.
• Look for Growth Opportunities:?Rising business confidence signals it’s time to strategise for expansion.
• Support Women in Business:?Whether through investment, mentorship, or partnerships, driving financial inclusion strengthens the entire economy.