Market Report : 11.04.2024

Published: 11/04/2024 By ECAP

The British Pound traded in a wide range against its peers yesterday as a lack of UK economic data left the pound exposed to market volatility. In fact, a souring market mood saw the increasingly risk-sensitive UK currency fall against its safer rivals but gain ground elsewhere. Looking forward, a speech from Bank of England policymaker Megan Greene later this evening could impact the British Pound.

The Euro lost ground across the board yesterday as market participants await today’s European Central Bank meeting. The ECB is widely expected to keep its main refinancing rate unchanged and hence, the focus will remain on the fresh round of staff projections. The markets have been pricing in a greater chance of the first rate cut in June amid a faster than anticipated fall in the Eurozone inflation.

The U.S. Dollar was boosted by hotter than expected consumer price index data for March, which furthered the notion that U.S. inflation was turning sticky above the Fed’s 2% annual target.  The reading, coupled with hawkish minutes from the Fed’s March meeting, saw investors largely price out expectations for a June rate cut by the central bank.

Data supplied by GC Partners