Market Report : 25.03.2024

Published: 25/03/2024 By ECAP

The British Pound fell to its lowest so far this month on Friday, after data showed UK consumer spending stagnated in February and BoE Governor Andrew Bailey said rate cuts "were in play" this year. Since the BoE's decision on Thursday, markets now anticipate three cuts, most likely starting in June, bringing the Bank more in line with the expected timing of rate cuts from the Federal Reserve and the European Central Bank.

The Euro traded in mixed fashion last week on account of growing expectations that the European Central Bank would start cutting interest rates sooner rather than later. In fact, financial markets anticipate at least three 25-basis point moves, with the first coming in June or July. Additionally, the growing speculation that the ECB will be the second major central bank to cut rates after the Swiss National Bank’s surprise move last week weighs on the Euro.

The U.S. Dollar rose sharply last Friday, after the surprise cut by the Swiss National Bank cast the Federal Reserve in a more hawkish light. Moreover, the U.S. central bank sharply upgraded its outlook for growth in 2024, and Thursday’s data suggested the U.S. economy remained on solid footing after the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Data supplied by GC Partners