Market Report : 12.04.2024

Published: 12/04/2024 By ECAP

The British Pound was broadly supported this morning after the ONS said the UK economy grew in February and revised higher its initial estimate for January's growth. This almost guarantees the quarterly number will show a decent return to growth, bringing an end to the mild recession seen at the end of last year.

The Euro lost further ground after yesterday’s ECB meeting ramped up expectations for a June interest rate cut. In fact, ECB President Christine Lagarde emphasised the economy's fragility, citing reducing labour market tightness and lower pricing pressures while giving a clearer hint that it may be planning a rate cut, especially as eurozone inflation continues to fall.

The U.S. Dollar rallied during yesterday’s choppy trading session, as weaker than expected U.S. producer prices did not relieve concerns about persistent inflation. This, in turn, has reinforced the belief that the Federal Reserve will delay cutting interest rates this year. In fact, Fed officials also repeated the need for a patient approach in easing monetary policy, further boosting the greenback.

Data supplied by GC Partners