The February 2025 edition of Market Services FX Spotlight features global market news and insights from RBC Investor Services' Foreign Exchange (FX) Market Trading Desk.
Headlines
25% tariffs on Canada and Mexico have kept the CAD and MXN under pressure
—Market Services FX Spotlight
- As expected, the Fed held rates steady at 4.25-4.5%, referencing a lack of progress on inflation and stronger labour market
- BoC announced an end to quantitative tightening in March and cut rates by 25 bps to 3%
- With the disinflation process well underway, the ECB cut 25 bps to a rate of 2.75%
- USD came off its highs following a decline in yields and a December CPI print that reassured investors inflation was still on its way to 2%
- The market is currently pricing in 25 bps cuts at the upcoming meetings for the BoE, RBA, and RBNZ
- Following the resignation of Canadian Prime Minister Justin Trudeau, a leadership race for the Liberal Party has commenced
- The Brazilian Central Bank, under new chair Gabriel Galipolo, unanimously agreed to raise the benchmark Selic rate by 100 bps to 13.25%
- The Banco Central de Chile unanimously left their key rate at 5% in their first pause since last July
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