 The forex markets was subdued in Asian session today. Dollar strength faded quickly after initial boost from stronger-than-expected US inflation data. While the greenback retains most of its gains against Yen, it has started to weaken against other major currencies. The reluctance of Dollar to sustain its rally—despite reduced odds of a Fed rate cut in the first half of 2025 and ongoing tariff threats—suggests that another down leg may be on the horizon. With US inflation data out of the way, market focus now shifts to the UK, where Q4 GDP figures are set for release. The economy is expected to have contracted -0.1% qoq, with a modest 0.1% mom expansion in December. Think tank NIESR remains cautiously optimistic, predicting subdued growth in the first half of the year before an acceleration in the second half. It expects GDP growth of 1.5% for 2025, supported by higher government spending and business investment.... |
