Published: 26/04/2024 By ECAP
The British Pound rose versus the U.S. Dollar and the Euro as market participants assessed the Bank of England's monetary policy path after recent mixed signals from policymakers. Moreover, some analysts argued that recent British economic data would suggest a later rather than earlier start of the BoE monetary easing cycle.The Euro seems to be holding its ground even though recent comments from ECB board members have hinted at the ECB initiating its easing cycle in June, with speculation swirling about three interest rate cuts for the rest of the year. Looking ahead, the relatively subdued economic fundamentals in the Eurozone leave the bloc’s single currency vulnerable to market dynamics.
The U.S. Dollar steadied in anticipation of key inflation data that is expected to factor into the Federal Reserve’s stance on interest rate cuts. For now, yesterday’s GDP data showed growth in the U.S. economy cooled more than expected in the first quarter, amid sticky inflation and high rates. This put upcoming PCE price index data squarely in focus.
Data supplied by GC Partners