Market Report : 14.02.2024

Published: 14/02/2024 By ECAP

The British Pound dipped against its peers after UK inflation undershot expectations and kept alive hopes that Bank of England interest rate cuts would commence in the summer. In fact, British consumer price inflation stood at an annual rate of 4% in January, below the 4.2% figure the market anticipated and the 4.1% the Bank of England forecasted in its February policy update.

The Euro found some relief yesterday following better than expected Economic Sentiment data from both the Eurozone and Germany. Looking forward, investors await the Eurozone GDP figures for the fourth quarter – an event that might trigger further volatility in the market. Additionally, market participants will pay attention to a speech by Christine Lagarde scheduled for tomorrow.

The U.S. Dollar hovered near three-month highs after stronger than expected U.S. inflation data brewed more fears that the Federal Reserve will keep interest rates higher for longer. In fact, the reading gave more credence to recent warnings from Fed officials that high inflation will see the bank keep interest rates steady for longer.

Data supplied by GC Partners