Market Report : 16.04.2024

Published: 16/04/2024 By ECAP

The British Pound has been underpinned against the Euro due to strong speculation that the ECB will sooner pivot to rate cuts but is performing weak against the US Dollar. In fact, the pound stayed at a five month low versus the dollar this morning. Going forward, investors will focus on the UK Consumer Price Index data for March.

The Euro has been struggling to find its footing amid expectations that the European Central Bank will be second among central banks from developed nations that will pivot to rate cuts. In fact, the single currency recorded its biggest weekly percentage drop since late September 2022 last week as the European Central Bank left the door open to a rate cut in June.

The U.S. Dollar rose to a five-month high against major peers this morning following yesterday’s hotter than expected U.S. retail sales figures. However, the numbers have raised more questions about when the Federal Reserve could begin cutting interest rates. Markets are now pricing in a 41% chance of the Fed cutting rates in July, compared with around 50% before the data.

 Data supplied by GC Partners