Market Report : 19.03.2024

Published: 19/03/2024 By ECAP

The British Pound wavered without a clear direction yesterday as a lack of UK economic data left Sterling adrift. Looking forward, investors await Thursday’s Bank of England interest rate decision. The central bank will almost certainly hold rates at 5.25% on Thursday as officials wait for more data, particularly on wages and services, on how durable the recent fall in inflation might be.

The British Pound wavered without a clear direction yesterday as a lack of UK economic data left Sterling adrift. Looking forward, investors await Thursday’s Bank of England interest rate decision. The central bank will almost certainly hold rates at 5.25% on Thursday as officials wait for more data, particularly on wages and services, on how durable the recent fall in inflation might be.

The U.S. Dollar was able to edge slightly higher yesterday afternoon. However, a cautiously upbeat market mood and the looming Federal Reserve interest rate decision kept a lid on the dollar’s gains. The Fed is anticipated to keep its interest rate unchanged for a fifth straight time at tomorrow’s meeting and signal that they still need further evidence that inflation will return sustainably to its 2% target.

Data supplied by GC Partners