Market Report : 08.02.2024

Published: 08/02/2024 By ECAP

The British Pound gained traction during the early Asian session this morning, bolstered by rising house prices in the UK. The data supported bets that the Bank of England was not likely to cut interest rates any time soon. In fact, Deputy Governor Sarah Breeden stressed that inflation was still too high and that there was “some way to go” before the bank could declare victory.

The Euro seems to be at risk of a notable breakdown against other major currencies as markets enter a prolonged period of broader Euro weakness. However, it's not yet a done deal. There is still a relatively high chance of renewed gains from current levels, as the current multi-month lows may attract buyers into the Euro.

The U.S. Dollar slipped back yesterday as investors continued to evaluate the likelihood that the Federal Reserve might kick off its easing cycle at the May or June events. Looking forward, it isn’t the busiest week as far as US economic data is concerned. U.S. inflation data for January, due next week, is now in focus for more cues on the path of interest rates.

Data supplied by GC Partners