Published: 14/06/2024 By ECAP
The British Pound was relatively flat this morning even though the UK economy showed no growth in April. With a national election taking place on July 4th, politicians will be monitoring and making use of every economic release. Looking forward, the BoE meets next week but there is little chance of a rate cut in the middle of an election campaign.The Euro continues to suffer from the rising political and economic uncertainty in the region. Moreover, following the European Central Bank’s first rate cut last week, ongoing speculation that the ECB could deliver another interest rate cut this year has weighed on the common currency through to this week.
The U.S. Dollar resumed its bullish stance yesterday, rapidly leaving behind the post CPI sell-off seen on Wednesday and regaining balance. The move comes following the rising prospects of just one interest rate cut by the Federal Reserve this year, with December being the most likely candidate.
Data supplied by GC Partners