Market Report : 11.03.2024

Published: 11/03/2024 By ECAP

The British Pound continues to maintain a positive tone following the delivery of last week’s Spring Budget. Looking forward, market participants eagerly await UK employment data, including the ILO Unemployment Rate and Employment Change figures, scheduled for release tomorrow. Additionally, the Consumer Price Index data for February is also on the radar for investors and analysts alike.

The Euro has been consolidating its recent moves as the week is due to see little in the way of impactful data releases. Because of this, the predominant driver of movement for the common currency is likely to be adjustment of European Central Bank interest rate cut bets. If these are postponed, then the Euro could gain ground against its peers.

The U.S. Dollar was on the back foot after last week’s comments from Powell suggested that the path for easing policy may not be far off. The US central bank seems to be getting the evidence needed to be confident inflation is returning sustainably to the 2% target. The dovish remarks from Powell triggered the expectation for rate cuts in June, with the market now pricing in 100-basis points of total easing this year.

Data supplied by GC Partners