Market Report : 26.03.2024

Published: 26/03/2024 By ECAP

The British Pound rallied against a basket of currencies yesterday following the release of better than expected UK retail sales data. In fact, the positive data came after ten months of declines, suggesting the retail climate in the UK was improving. Moreover, the data suggests the UK economy could be turning around after falling into a technical recession in Q4.

The Euro paired some of its recent losses against the US Dollar, however, upside potential seems limited. In fact, the Eurozone’s Consumer Confidence in Spain was almost unchanged, while ECB officials led by Mario Centeno said inflation has peaked. Moreover, Fabio Panetta added that the EU’s inflation is quickly falling toward its 2% target, giving room to cut rates.

The U.S. Dollar was on the back foot this morning as market focus turns to the release of the Federal Reserve's favoured inflation measure on Friday. In fact, the data could guide the path of the U.S. interest rate outlook. Nevertheless, for now, a shift in the global rate outlook following a slew of central bank meetings last week had pushed the dollar to a one-month high against its major peers.

Data supplied by GC Partners