Market Report : 15.02.2024

Published: 15/02/2024 By ECAP

The British Pound dropped to fresh lows for the week after it was confirmed the UK fell into recession in the second half of 2023. The development was expected; however, the figure was worse than the -0.1% reading the market expected. Nevertheless, survey data for January suggests the economy is recovering, which should underpin the Pound.

The Euro slid further yesterday following the release of the seasonally adjusted Eurozone GDP figures, which met market expectations for the fourth quarter. As a result, ECB President Christine Lagarde reiterated that they will continue to follow a data-dependent approach to policy. Lagarde further added that the ECB's forward-looking wage tracker points to strong wage pressures. However, these comments failed to provide a boost to the Euro.

The U.S. Dollar surged to three-month highs earlier this week, but fell slightly in overnight trade, consolidating its recent move. This comes as data earlier in the week saw traders further scale back expectations of early interest rate cuts by the Federal Reserve. Looking forward, January retails sales and initial jobless claims will be looked upon for fresh impetus

Data supplied by GC Partners