Market Report : 17.05.2024

Published: 17/05/2024 By ECAP

The British Pound was relatively flat this morning as market participants await the release of next week’s key Consumer Price Index figures. For now, financial markets were focused on a speech delivered by Catherine Mann of the BoE. This event followed comments made by Megan Greene, who recently shared a cautiously optimistic perspective on inflation, mirroring sentiments expressed by BoE Governor Andrew Bailey at the last meeting.

The Euro is treading water as a shortage of Eurozone data has seen the single currency struggle to attract investor attention. Nevertheless, ECB speeches on today’s calendar could potentially impact the Euro’s price action. With a recent slew of dovish commentary from ECB officials, should the central bank’s Vice President Luis De Guindos hint at upcoming interest rate cuts, the euro could close the week on the back foot.

The U.S. Dollar recovered a measure of recent losses after a string of Federal Reserve officials warned that bets on interest rate cuts may be premature. In fact, this saw investors scale back bets on a September rate cut, albeit slightly, according to the CME Fedwatch tool. While the greenback was still headed for some weekly losses, it was trading well above yesterday’s one-month low.

Data supplied by GC Partners