Market Report : 08.05.2024

Published: 08/05/2024 By ECAP

On Thursday, the Bank of England (BoE) will announce monetary policy decisions. Sterling has been fragile this week, with investors refraining from taking large positions ahead of the BoE event. It is widely expected that the BoE will keep the interest rates unchanged. We also have the UK GDP release for the first quarter of 2024, heads will turn to if the UK manage to overcome the recession fears from the second half of 2023.

Today the ECB holds the non-monetary policy meeting as well as Retail sales data in Italy, which will contribute towards the current inflation data. There has been an improving outlook for the eurozone economy and currency over the past few weeks, with reports the ECB will cut its interest rates in June, three months earlier than expected by the US fed.

GBP/USD stays on the back foot and trades in negative territory, after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.

Data supplied by GC Partners