The Weekly Market Update
News & Insights
w/c 19th January: Trade Tensions Return
GBP
The British Pound is supported at the start of the week as the Dollar softens following renewed US tariff threats linked to Greenland. However, the Pound’s outlook later this week will hinge on UK employment and inflation data, which will shape expectations around Bank of England policy. Any signs of labour market cooling or easing price pressures could quickly cap gains and reintroduce downside risks.
EUR
The Euro is in focus at the start of the week as trade tensions with the US return to the forefront of the market’s attention. Fresh tariff threats and uncertainty ahead of political meetings in Davos have weighed on sentiment. With little Eurozone data due today, the single currency is likely to remain sensitive to headlines rather than economic releases in the near term.
USD
The U.S. Dollar is on the back foot as markets react to renewed tariff threats against European allies and concerns over broader US trade policy. With US markets closed for the Martin Luther King Jr. Day holiday, liquidity is thin, exaggerating moves. Attention this week will turn to political developments, upcoming US data and longer term questions around leadership and policy direction.
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