Market Report : 27.02.2024

Published: 27/02/2024 By ECAP

The British Pound has held up better than all other major currencies against the U.S. Dollar in 2024, down around 0.2% so far this year. However, while it has had a decent rally from early February's two-month lows, overall, it has been broadly stuck in a range. In fact, sterling volatility has hit a four-year low, reflecting the degree of investor complacency and the currency's steady performance.

The Euro held its ground during yesterday’s American trading hours, helped in part by ECB President Christine Lagarde’s recent remarks. Lagarde told the European Parliament that wage pressures in the Euro area were still strong. In fact, the central bank’s restrictive policy stance seems to be acting as a safeguard against a wage-price spiral.

The Dollar Index was on the back foot this morning as the greenback lost some ground in anticipation of key economic data. The PCE price index – which is the Fed’s preferred inflation gauge – is due on Thursday and is expected to factor into the central bank’s plans for interest rates. Before that, a second reading on fourth-quarter U.S. GDP is due tomorrow

Data supplied by GC Partners