Published: 28/05/2024 By ECAP
The British Pound retook its crown as the best-performing G10 currency of 2024 following last week's above-consensus inflation print. The upcoming week's calendar does not feature major economic events that are likely to influence the currency. For that reason, market participants will be watching closely for any shifts in policy or economic indicators that could affect Sterling’s trajectory in the near future.The Euro was relatively subdued yesterday due to US and UK markets being closed — the former for Memorial Day and the latter for a bank holiday. Looking forward, market participants will pay close attention to Wednesday’s inflation figures from Germany and Friday’s Eurozone inflation data. German headline CPI is expected at 2.8% year-on-year and the Eurozone equivalent at 2.5%.
The U.S. Dollar edged lower this morning, influenced by a broader decline in cross-market volatility and a growing appetite for risk among investors. This shift is partly attributed to the anticipation of a soft US economic landing, a scenario that investors are positioning for ahead of the upcoming core PCE inflation data release.
Data supplied by GC Partners