Market Report : 27.03.2024

Published: 27/03/2024 By ECAP

The British Pound strengthened against the U.S. Dollar yesterday and held steady on the Euro as markets continued to digest the implications of last week's central bank meetings. Current market pricing shows roughly a 65% chance the British central bank starts cutting rates by its June meeting, with a very small chance of a move at its next meeting in May.

The European shared currency has been weighed down by rising bets for a June rate cut by the European Central Bank. Moving ahead, today’s economic docket features the release of the Spanish CPI report, which might influence the common currency and provide some impetus in the absence of any relevant data.

The U.S. Dollar rose yesterday as investors were grappling with whether the U.S. central bank will cut interest rates three times this year, as is currently expected, if inflation remains elevated and economic growth stays strong. For now, market participants remained biased towards the greenback in the wake of dovish signals from other major central banks around the world.

Data supplied by GC Partners