Market Report : 15.05.2024

Published: 15/05/2024 By ECAP

The British Pound was relatively flat as UK labour figures wobbled yesterday. However, investors skirted the worst of it after unemployment benefits claims rose less than expected and wages grew at a healthy pace. This saw markets reprice their current Bank of England interest rate cut bets, with money markets reporting an over 50% change that the central bank will begin loosening its monetary policy next month.

The Euro was boosted by yesterday’s upbeat ZEW Economic Sentiment Survey. In fact, the Eurozone ZEW Economic Sentiment Survey improved to 47.0 in May from 43.9 in the previous month, above the estimation of 46.1. Attention will now shift to the European GDP growth numbers, which are estimated to grow by 0.3% in Q1.

The U.S. Dollar lost a bit of ground as markets awaited more cues on interest rates from key U.S. inflation data due later in the day. For now, comments from the Fed’s Powell, specifically that monetary policy was currently tight enough to eventually bring down inflation, was a key driver of the dollar’s recent decline.

Data supplied by GC Partners