Market Report : 09.01.2024

Published: 09/01/2024 By ECAP

The British Pound has retraced part of last week’s lost ground as a positive risk-on sentiment has helped the currency. Adding to this, a former founding member of the Bank of England’s monetary policy committee, DeAnne Julius, said the central bank will not be in a position to begin cutting interest rates in 2024.

The shared currency has been consolidating its recent moves, briefly benefiting from expectations that the ECB will keep interest rates at record highs for some time. These renewed expectations were bolstered by the un-expected jump in Eurozone inflation last month. Moreover, ECB official Boris Vujcic stated yesterday that the central bank does not foresee cutting interest rates before the summer.

The U.S. Dollar steadied in Asian trade this morning after falling from three-week highs in the prior session, as uncertainty over rate cuts in 2024 spurred some profit-taking. Nevertheless, the greenback still retained the bulk of its gains made over the past week, as investors favoured the dollar before key CPI inflation data due this Thursday.

Data supplied by GC Partners