Market Report : 03.04.2024

Published: 03/04/2024 By ECAP

The British Pound mustered some strength yesterday after data showed Britain's manufacturing sector expanded in March and mortgage approvals rose in February. However, gains seem limited due to slowing UK inflation and a dismal market mood. For now, investors see a roughly 60% chance the BoE will cut rates by June, up from 15% at the start of March.

The Euro continues to tread lower against a basket of currencies as German inflation eased slightly more than expected in March, the lowest in almost three years. In fact, yesterday’s data has triggered further speculations of rate cuts from the European Central Bank. Looking forward, investors await the advanced Eurozone inflation data for March for fresh impetus.

The U.S. Dollar stabilized near its recent multi-month high in European trade yesterday as strong economic data hit expectations of early rate cuts by the Federal Reserve. In fact, further signs of U.S. economic strength has resulted in investors reining in expectations of early interest rate cuts by the Federal Reserve, supporting the greenback.

Data supplied by GC Partners