Market Report : 07.05.2024

Published: 07/05/2024 By ECAP

The Pound saw a continual drop against the Euro over the past week and a flat trading level against the Dollar. The market is now looking ahead to the Bank of England’s policy update on Thursday – no rate adjustments are expected, however, should the commentary point towards a June rate cut, the Pound is at risk of a tumble against its peers.

The Euro has seen positive moves against Sterling and the Dollar; EURUSD has notably hit a 4-week high. The single currency has benefited from the Dollar weakness that followed the US jobs report last week. With Eurozone inflation continuing to ease, the ECB is growing more confident about cutting rates imminently, with reports suggesting June’s update will see the first move. This week is quiet for the Eurozone, aside from some retail sales data due today.

Last Friday’s US employment data included a much lower non-farm’s figure, with 175k jobs added vs the 238k forecast. This has further increased expectations of a sooner than expected rate cut from the Federal Reserve, with an initial cut now priced in for September (prev. December). Data in the US is very limited this week, however, comments from Fed official Kashkari will gain some attention this week.

Data supplied by GC Partners