Market Report : 19.02.2024

Published: 19/02/2024 By ECAP

The British Pound got a lift on Friday after data showed UK retail sales grew at their fastest pace in nearly three years in January. In fact, the data didn’t shift expectations around the Bank of England's monetary policy outlook. Persistent price pressures, steady labour demand, and robust household spending would allow BoE policymakers to maintain a hawkish narrative for a longer period.

The Euro mustered up some strength on Friday and retraced part of its recent losses as investors await further data for fresh impetus. Today’s economic calendar will not feature any macroeconomic data releases that could influence the Euro. However, looking forward, preliminary Manufacturing and Services PMI reports, due later in the week, from Germany and the Euro area will be scrutinized by investors.

The U.S. Dollar steadied near three-month highs as more signs of sticky U.S. inflation saw investors largely phase out expectations of early interest rate cuts. In fact, Jerome Powell said the central bank needs greater confidence in inflation's downward trajectory before it can cut rates. Looking forward, U.S. markets are closed for the Presidents' Day holiday, and volumes are likely to be low through the day.

Data supplied by GC Partners