Market Report : 15.03.2024

Published: 14/03/2024 By ECAP

The British Pound is trading sideways this morning following the UK’s latest GDP report. Domestic GDP figures for January reported that the UK returned to growth at the beginning of 2024, boosting hopes that the UK’s recession in the second half of 2023 will prove to be short lived. The data came in at 0.2%, rising from December’s 0.1% contraction, and printing in line with market expectations.

Euro gains remained limited yesterday due to comments from ECB policymaker Francois Villeroy de Galhau, who said interest rate cuts are more likely in June. Moreover, recent data failed to uplift the bloc’s single currency. The Eurozone published January Industrial Production, which fell 3.2% MoM and 6.7% YoY, much worse than anticipated.

The U.S. Dollar steadied from recent gains as markets sought more cues on U.S. interest rates from producer inflation and retail sales data due later in the day. The data also comes just days before a Fed meeting next week, where the central bank is widely expected to keep rates on hold and offer scant cues on when it plans to begin trimming rates.

Data supplied by GC Partners