Today’s Headlines:
- Pound made a recovery: As inflation once again dominates headlines, the Pound made a recovery against both Euro and US Dollar last week.
- UK inflation figures due for release: Keep a close eye out for the announcement due 7am on Wednesday morning.
- Expectations are for two Eurozone rate cuts this year: European Central Bank could face pressure in their monetary policy decision about when to start their rate cutting cycle.
In Depth: This Week’s Market Update
The Pound made a recovery against both the Euro and US Dollar last week as inflation once again dominates the headlines.
UK inflation figures are due to be released on Wednesday morning so keep a close eye out on this announcement at 7am.
Inflation in Europe has fallen over the last few months but remains above the target level set by the European Central Bank. Inflation in the Eurozone fell to its lowest level for over two years and this could put pressure on the ECB on their monetary policy decision about when to start their rate cutting cycle.
Expectations are for two rate cuts this year in Europe but this will also be data driven.
A number of Federal Reserve members are due to be speaking both today and Tuesday and with the FOMC minutes due on Wednesday this could provide some insight as to the Fed’s recent decision to keep interest rates on hold.
