Market Report : 12.03.2024

Published: 12/03/2024 By ECAP

The British Pound lost some momentum this morning after the UK Office for National Statistics reported an uptick in the unemployment rate to 3.9% during the three months to January and a slight moderation in the UK wage growth data. Looking ahead, the UK monthly GDP, Industrial Production, Manufacturing Production, and Trade Balance for January will be released tomorrow.

The Euro was relatively flat this morning as market participants await the release of German inflation data which could give further cues on the ECB’s monetary policy. For now, the ECB has articulated its intention to uphold appropriately stringent policy measures for as long as necessary to reach its inflation objective. Ultimately, the optimistic outlook surrounding the ECB has offered the Euro some support.

The U.S. Dollar steadied as markets awaited key U.S. inflation data for more cues on when the Federal Reserve could begin cutting interest rates. The CPI data is expected to show inflation remaining sticky and well above the Fed’s 2% annual target through February – a trend that is likely to elicit a hawkish outlook from the central bank.

Data supplied by GC Partners