Market Report : 26.02.2024

Published: 26/02/2024 By ECAP

The British Pound gained some momentum from last Thursday’s mixed PMI data for February. In fact, Economists at MUFG Bank have noted that the recent UK PMI data suggests an improving outlook and the technical recession experienced in the second half of last year appears to be coming to an end. Looking forward, there is nothing on the UK calendar that could bother the Pound or UK interest rate expectations in the coming days.

The Euro received some support on hawkish comments from ECB members last Friday. Additionally, ECB Monetary Policy Meeting Accounts for January indicated that policymakers maintained caution regarding easing monetary policy. They expressed a consensus that it was premature to discuss rate cuts at the meeting. On that note, investors will likely watch ECB President Christine Lagarde’s speech later today.

The U.S. Dollar regained some ground as investors hunkered down before a barrage of cues on interest rates and U.S. inflation due later this week. In fact, the greenback remains within sight of three-month highs, as a chorus of Federal Reserve officials warned that the bank was in no hurry to begin trimming interest rates early, especially as inflation remained sticky.

Data supplied by GC Partners