Published: 25/04/2024 By ECAP
The British Pound mustered some strength over the past days as markets anticipate that the Bank of England will wait until next quarter to lower borrowing costs. In fact, the BoE Governor Andrew Bailey and other BoE officials stated that inflation in the United Kingdom declined in line with the central bank's expectations and the risk of elevated inflation had reduced, paving the way for a rate cut.The Euro gained ground against the US dollar and the British pound recently, even as markets anticipate a European Central Bank rate cut in June. Looking forward, market participants will focus on the European Central Bank’s Economic Bulletin and remarks from the German Bundesbank President, both of which could influence the Euro’s strength.
The U.S. Dollar steadied amid uncertainty over U.S. interest rates and ahead of key economic signals in the coming days. On that note, GDP growth number might offer some hints about how the US economy performs in Q1 of 2024. In case the report shows stronger than expected data, this might trigger speculation that the US Fed will delay the rate cut cycle, which might lift the greenback.
Data supplied by GC Partners