Market Report : 06.03.2024

Published: 06/03/2024 By ECAP

The British Pound mustered some strength and continues its recent winning streak as markets await Jeremy Hunt’s budget report. Hunt is slated to unveil the government's fiscal agenda, outlining tax and spending plans ahead of the general election. Speculation suggests he may reduce national insurance contributions for employees, following an initial reduction announced in the autumn statement.

The Euro extended its gains against the greenback following the release of Eurozone flash PMIs. In fact, the Services Index rose to 50.2, above expectations of 50, while the Composite improved to 49.2 from the 48.9 expected. Although the data suggests the EU’s economy is improving, downside risks remain. Focus is now on tomorrow’s ECB meeting.

The U.S. Dollar steadied from recent losses as markets hunkered down in anticipation of more key cues on U.S. monetary policy. In fact, Focus is squarely on a two-day testimony from Federal Reserve Chair Jerome Powell, who is widely expected to maintain his hawkish rhetoric on interest rates. Beyond Powell, nonfarm payrolls data for February is also on tap this week.

Data supplied by GC Partners