MARKET REPORT : 15.01.2024

Published: 15/01/2024 By ECAP

The British Pound gained some ground following Friday’s improved production data from the United Kingdom. In fact, the United Kingdom's industrial sector activity rebounded in November even though total Industrial Production remained consistent and in line with expectations, contrasting with the previous decline.

The Euro was relatively flat as ECB officials emphasized the need to wait for additional economic data before making decisions on rate normalization. Looking forward, ECB chief economist Philip Lane stated that the central bank will have important data by June to decide on a likely series of interest rate cuts, but moving prematurely may prove self-defeating.

The U.S. Dollar ticked lower this morning as focus turned to a string of upcoming economic readings for cues on when the bank could begin trimming interest rates. For now, bets on early rate cuts were reinforced by data on Friday, which showed producer price index inflation fell more than expected in December.

Data supplied by GC Partners