US economic output is forecasted to remain flat throughout 2025 amid stagflationary concerns stemming from the ongoing Oil shock and tensions involving Iran, according to TD Securities economists Oscar Munoz and Eli Nir, as reported by FX Street (TD Securities).
In currency markets, the British Pound strengthened against the US Dollar, with the GBP/USD pair climbing to 1.3600—the highest level since May 12. This move was driven by diminishing expectations of an imminent Federal Reserve rate hike, which weighed on the US Dollar and boosted the British Pound, FX Street noted.
For Japanese investors, these developments warrant close attention as the US Dollar’s weakening could influence Yen-dollar dynamics and impact cross-border equity and FX trading strategies in the year ahead.