Market Report : 11.06.2024

Published: 11/06/2024 By ECAP

The British Pound retraced part of its recent gains after reports indicated a larger than expected decrease in UK employment alongside earnings figures that were marginally softer than anticipated. Given the BoE’s lack of opportunities to communicate with the market because of the 4th of election, market participants will have to wait for the BoE rate meeting on the 20th of June for more substantial information regarding the central bank's outlook and potential policy changes.

The Euro lost further ground yesterday as the winds of political uncertainty continue, encouraging further calls of more pain ahead for the single currency. In fact, a bumpy parliament shuffling poses near-term risks for policymaking, weighing heavily on the Euro. Adding fuel to the burning embers of political uncertainty, French President Emmanuel Macron called a snap election, a move that is widely seen a major gamble for his Ensemble party.

The U.S. Dollar has been trading in mixed fashion this morning due to a lack of impactful macroeconomic data which has left the greenback moving in line with market sentiment. Nevertheless, it seems like the Dollar is carrying its momentum forward from last week’s red-hot Non-Farm Payrolls print. Due to signs of robust employment, markets have begun to expect that the Federal Reserve will only cut rates twice this year.

Data supplied by GC Partners