Market Report : 08.03.2024

Published: 08/03/2024 By ECAP

The British Pound edged up during yesterday’s trading session after UK finance minister Jeremy Hunt's spring budget offered a raft of tax cuts. In fact, Hunt trimmed national insurance contributions by 2 pence but stuck to a fiscally cautious mandate that eased anxiety about Britain's $3 trillion debt burden, boosted consumer stocks and helped the pound stay robust against other major currencies.

The Euro is at a two-month high and eyeing its best week against the U.S. Dollar in months, even as yesterday’s ECB meeting laid the ground for a rate cut in June and lowered its inflation forecast. Elsewhere, a risk-on market mood induced further pressure on the Euro, as its safer stature pushed it lower against risk-sensitive currencies like the British Pound.

The U.S. Dollar struggled over the course of yesterday’s session, as a decidedly bullish market mood sapped its appeal. In fact, the dollar's 1% fall for the week thus far is set to be its steepest in nearly three months, and today’s U.S. jobs data is the next test for the greenback. Forecasts are for nonfarm payrolls to have increased by 200,000 in February, down from January's blowout 353,000 gain.

Data supplied by GC Partners