Published: 29/02/2024 By ECAP
The British Pound is walking a well-trodden path against the Euro and Dollar, with current Pound-Euro and Pound-Dollar exchange rates seemingly unwilling to budge. In fact, a relatively sanguine economic outlook, belied by the flat economy and steady communications from the Bank of England regarding interest rate policy, have contributed to the low-volatility environment.The Euro stumbled for the second straight day against the US Dollar as investors assessed recent data. Looking forward, market participants await a further slew of eurozone data with German Retail Sales and Consumer Price Index numbers to be released later in the session. Tomorrow will round out the week with pan-European Harmonized Index of Consumer Prices inflation.
The U.S. Dollar firmed in early European trade yesterday, shrugging off signs of U.S. economic weakness ahead of the release of today’s key inflation data. A stickier than expected reading could prompt the Fed to delay rate cuts further. For now, markets have largely priced out a rate cut at both the Fed's March and May meeting, and the chance of a cut in June is seen as largely 50:50.
Data supplied by GC Partners