Published: 28/06/2024 By ECAP
The British Pound seems to be gaining some momentum this morning as the UK economy grew slightly faster than expected in the first quarter of the year. In fact, GDP expanded 0.7% in the first three months of the year. This follows falls in the previous two quarters, including a 0.3% decline at the end of last year, which had left the economy in a shallow technical recession.The Euro remained on the back foot all week as European economic data has been strictly mid-tier, leaving markets to turn an eye towards political risks and global dynamics. Moreover, next week’s French elections could buoy the bloc’s single currency. The first round of voting happens on Sunday. With the current ruling party polling in third place, the fractured nature of the forecast vote will see French politics continue to weigh on the Euro.
The U.S. Dollar stuck to near two-month highs before today’s key inflation data that is likely to factor into the Federal Reserve’s outlook on interest rates. The reading is expected to show inflation cooled slightly in May but remained well above the Fed’s 2% annual target. For now, uncertainty over just when and by how much the Fed will cut rates kept flows to the dollar strong.
Data supplied by GC Partners