Market Report : 29.04.2024

Published: 29/04/2024 By ECAP

The British Pound rebounded firmly against the US Dollar, snapping two weekly declines in a row. The move comes as a boost in global market sentiment, coupled with improving UK business activity in April, aided the risk sensitive British Pound. Looking forward, the UK economic docket is once again relatively quiet, therefore leaving the British Pound vulnerable to market dynamics.

The Euro saw modest support from mixed local data last week. In fact, the Hamburg Commercial Bank and S&P Global PMIs showed that, while manufacturing output remained within contraction territory, the services sector continued to improve. Looking forward, market participants will pay close attention to this week’s Eurozone inflation numbers.

The U.S. Dollar lost a bit of ground over the past week but was sitting on strong gains for April after investors largely priced out most expectations of early rate cuts by the Fed. Focus is now squarely on the Fed meeting scheduled for Wednesday the 1st of May. The central bank is expected to keep rates steady and potentially offer a hawkish outlook, given recent stickiness in U.S. inflation.

Data supplied by GC Partners