Published: 09/02/2024 By ECAPThe British Pound has pushed higher since the beginning of the year but next week will test the UK currency’s resilience with the release of wage, inflation, GDP, and retails sales data. All are key indicators for the Bank of England, which will look for persistent undershoots in UK data relative to expectations before considering cutting interest rates.
The Euro was muted yesterday as a lull in Eurozone economic data kept the common currency subdued and investors cautious. On that note, this morning’s figures released by the Federal Statistical Office showed that German inflation dropped to 2.9% - its lowest level since June 2021. Later in the session, Italy is expected to release its industrial output data.
The U.S. Dollar was relatively flat this morning, ahead of next week’s January CPI inflation report, with all eyes currently focused on today’s seasonally adjusted CPI revisions. The revisions will likely help markets reprice the Fed rate cut expectations. Moreover, the data will be closely scrutinized by the Fed for affirming the disinflation trend.
Data supplied by GC Partners