Market Report : 20.02.2024

Published: 20/02/2024 By ECAP

The British Pound was relatively flat this morning as the BoE is still expected to maintain interest rates at their current level to address persistent consumer prices in the UK. Looking forward, on Thursday, the preliminary February Manufacturing and Services PMI surveys for the UK will be looked upon for fresh impetus.

The Euro could extend its recent losses in the coming months as the German economy's contraction stretches into 2024. In fact, German fourth-quarter GDP fell by a seasonally adjusted 0.3%. Moreover, Germany's central bank now says this decline will continue into the first quarter, marking an official recession.

The U.S. Dollar edged up and remained near three-month highs as it saw few cues for movement from yesterday’s U.S. holiday. The recent appreciation comes as investors digest the fading expectations of early and aggressive Federal Reserve rate cuts. In fact, markets began this year by pricing six Fed rate cuts, now expecting only three.

Data supplied by GC Partners