Published: 17/04/2024 By ECAP
The British Pound faces downward pressure as investors anticipate two rate cuts by the Bank of England this year, with the initial move likely in August or September. In fact, BoE Governor Andrew Bailey stated that there is compelling evidence indicating a decline in UK inflation. However, the key question for BoE policymakers, according to Bailey, is how much additional evidence is needed before considering interest rate cuts.The Euro faces challenges amid growing speculation that the European Central Bank will commence interest rate cuts in June, driven by a tepid Eurozone economic outlook and moderating core inflationary pressures. In fact, ECB President Christine Lagarde suggested that rate cuts are imminent, barring any significant unforeseen developments.
The U.S. Dollar steadied near five-month peaks after strong U.S. economic data and warnings from the Federal Reserve saw investors largely price out bets on early interest rate cuts. In fact, remained biased towards the dollar after Powell said that recent signs of sticky inflation gave the Fed less confidence to begin cutting interest rates.
Data supplied by GC Partners