Market Report : 30.04.2024

Published: 30/04/2024 By ECAP

The British Pound rallied against the Dollar and the Euro yesterday, reaching its highest levels in around two weeks. The move comes following mixed guidance from Bank of England policymakers over the inflation outlook. Consequently, investors have reduced their bets on BoE rate cuts. Looking forward, and in the absence of top-tier economic data releases from the UK, sterling is poised to follow market price dynamics.

The Euro struggled to attract support yesterday after economic sentiment in the Eurozone unexpectedly declined in April. In addition, mixed German inflation figures infused the bloc’s single currency with some volatility. Ultimately, the uncertainties surrounding the ECB’s rate cut timing seem to be dragging the Euro lower; thus, creating further headwinds for the bloc’s single currency.

The U.S. Dollar was relatively flat as market participants await tomorrow’s Federal Reserve meeting. The central bank is expected to keep rates steady but could potentially offer hawkish signals in the wake of sticky inflation readings. In fact, investors will take more cues from the tone of the meeting and Chair Jerome Powell’s press conference. For now, markets expect only one Fed rate cut in 2024.

Data supplied by GC Partners