Market Report : 28.03.2024

Published: 28/03/2024 By ECAP

The British Pound was relatively flat this morning, struggling to find a clear direction as investors wait for fresh cues about when the Bank of England will begin reducing interest rates. Even though the United Kingdom’s inflation has come down significantly, BoE policymakers are expected to adopt a cautious approach as early rate cuts could revamp price pressures again.

The Euro lost further ground between yesterday and today as German Retail Sales data for February remains weaker than expected. In fact, monthly Retail Sales surprisingly contracted by 1.9% against the consensus of 0.3% growth. Ultimately, weak Retail Sales data indicates deepening cost of living crisis due to high interest rates by the European Central Bank.

The U.S. Dollar consolidated against major currency peers this morning, gaining some ground as investors braced for key economic data.  PCE price index – the Fed’s preferred inflation gauge – is due tomorrow. While markets will be closed for the Good Friday holiday, the reading is still expected to factor into the Fed’s outlook on interest rates.

Data supplied by GC Partners