Markets were a bit more upbeat to begin the week, which helped the pound and the euro gain a touch of momentum against the US dollar. GBP/USD gained around half a cent over the course of Monday, while EUR/USD also trended upwards by around 0.25%.
There was little for currency markets to get too excited about, which helped any movements stay relatively small. However, with economic releases and the European Central Bank’s interest rate decision on the schedule this week, it’s likely there will be more volatility around the corner.
The German trade surplus narrowed from €27.5bn to €21.4bn in February, a slightly bigger fall than was expected. Shipments to the EU and other exports were what tilted the scale, along with a general increase in imports.
While millions gathered to watch the solar eclipse, JPMorgan’s Jamie Dimon tried in vain to grab the attention. In his annual letter to shareholders, the high-flying executive warned that interest rates would have to stay elevated longer than many people thought to control the effect of government stimulus programmes.
The price of oil fell back from the five-week high it reached last week as Israel announced it had withdrawn troops from Khan Younis. Fellow commodity gold meanwhile reached an all-time high of over $2,350 per troy ounce on Monday.
Finally, the recently formed AUKUS pact of Australia, the UK and the US could soon have a new member. Government sources said they were considering bringing Japan into the fold to respond to the growing threat of China in the region.
Do be sure to look our for our Quarterly Forecast, which will be published next week. In the report, we’ll be taking a look at the timeline for interest rate cuts, what geopolitical uncertainty means for your budget, as well at all things nautical. Keep your eyes peeled!
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