Market Report : 16.02.2024

Published: 16/02/2024 By ECAP

The upbeat UK Retail Sales data failed to boost the British Pound this morning as investors were still concerned about the UK growth numbers for Q4. In fact, even though UK retail sales for January came in at 3.4% MoM, above all estimates, the British Pound was relatively flat. This follows yesterday’s softer than expected GDP numbers, which meant the British economy entered a recession in the latter part of 2023

The Euro has been trading in mixed fashion this past week as the recent Eurozone GDP figures for the fourth quarter showed no change. Despite this, the ECB's forward-looking wage tracker indicates robust wage pressures. Christine Lagarde, President of the ECB, commented that recent data indicates continued subdued economic activity in the near term.

Mixed macroeconomic data releases from the US and the positive shift seen in risk mood made it difficult for the U.S. Dollar to hold its ground yesterday. Retail Sales in the US declined 0.8% on a monthly basis in January, while the weekly Initial Jobless Claims declined to 212,000 from 220,000. Later in the day, the US Bureau of Labour Statistics will release the Producer Price Index data for January.

Data supplied by GC Partners