Following a year of on again, off again trade tariffs, rising unemployment, and flatlining GDP, UK Chancellor Rachel Reeves has announced that we’re living in an “age of insecurity”.
Reeves made the declaration just hours after the Office for National Statistics revealed UK government borrowing had grown £3bn more than forecast, increasing the cost of interest payments.
This is just the latest knock of 2025, increasing the uncertainty that makes it difficult for businesses to grow. How can they plan when the cost of doing business at home and trading overseas is changing from month to month?
To secure certainty for your budget, lock in today’s GBP/EUR rate with a call to your account manager on 020 8003 4915.
Yet, hours after Reeves’ speech, US president Donald Trump announced trade agreements with Japan, Indonesia and the Philippines. The news gave confidence to traders that the trade tariffs due to hit countries on August 1 may not be as steep as feared.
Traders sold their dollars and bought shares in businesses that would have been harmed by the tariffs, such as Toyota and Mitsubishi. Though by moving their dollars to shares, the dollar fell 0.4% in value against the pound and euro.
If an American were looking to buy a holiday home in Europe, then that rapid fire change in the market will have cost them thousands of dollars.
The unpredictability of 2025 – this “age of insecurity” – continues.
