Market Report : 24.04.2024

Published: 24/04/2024 By ECAP

The British Pound found some strength yesterday as the speculation that the Bank of England will cut interest rates in summer declined following comments from the BoE’s chief economist. Hew Pill said that a slowdown in headline inflation was not enough of a reason to ease policy, adding that there were greater risks from cutting the rates too quickly, rather than too late.

The Euro rallied across the board yesterday as overall business activity in the Eurozone expanded at its fastest pace in almost a year, with a robust rebound in the bloc's major service sector. In fact, the bloc’s Services PMI hit a fresh eleven-month high, rising to 52.9 in April from 51.5 in March. However, the dovish stance of the European Central Bank might limit any further gains.

The U.S. Dollar nursed its wounds this morning following big tumbles against the Euro and the British Pound. On that note, the greenback’s broad overnight losses were driven by a combination of surprisingly robust European activity data and cooling U.S. business growth. In fact, business activity cooled to a four-month low due to weaker demand, while rates of inflation eased slightly, suggesting some possible relief for the Federal Reserve.

Data supplied by GC Partners