Market Report : 07.03.2024

Published: 07/03/2024 By ECAP

The British Pound was lifted by encouraging comments and the high for longer rate narrative presented by Jeremy Hunt. The UK’s Chancellor of the Exchequer said that the UK economy has dealt with the financial crisis, the pandemic, and the energy crisis caused by the war in Europe, while also adding that interest rates will remain high as the central bank tries to bring down inflation.

The Euro was relatively flat this morning as investors gear up for the European Central Bank's monetary policy announcements. On that note, the central bank is widely expected to keep interest rates at a record 4% today. Alongside the policy statement, the ECB will release the revised macroeconomic projections. Upward revisions to inflation and growth expectations could suggest that the ECB is likely to delay a policy pivot and provide a boost to the Euro.

The U.S. Dollar curbed recent losses as Federal Reserve officials presented mixed cues on interest rates. The greenback had tumbled in overnight trade after Fed Chair Jerome Powell said the bank will cut interest rates in 2024. But Powell offered few cues on the timing and scale of the Fed’s planned cuts and reiterated his warning over sticky inflation limiting any monetary easing.

Data supplied by GC Partners