Market Report : 21.02.2024

Published: 21/02/2024 By ECAP

The British Pound seems to be gathering some strength against its peers on the back of positive comments from the Bank of England Governor Andrew Bailey. However, markets are still pricing in that the first rate cut will be in the August meeting. Nevertheless, incoming data will continue shaping the timing of the easing cycle.

The Euro continues to face challenges, possibly stemming from renewed market caution. In fact, investors are bracing for potential volatility surrounding the forthcoming release of Eurozone PMI data, set for tomorrow. On that note, ECB President Christine Lagarde emphasized the significance of wage data in determining the timing of monetary easing measures.

The U.S. Dollar retreated in anticipation of more cues from the Federal Reserve on the path of interest rates. In fact, focus will be on the publication of minutes from the Federal Reserve's late January policy meeting, with markets on the lookout for any cues about the potential trajectory of U.S. interest rates.

Data supplied by GC Partners