April 17, 2024

Daily Report 17/04/2024

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In March, UK CPI (MoM) maintained a steady pace of 0.6%, while year-over-year Consumer Inflation increased by 3.2%, slightly above the expectations of 3.1% but lower than the previous 3.4%. Meanwhile, Core CPI YoY rose by 4.2%, surpassing expectations of 4.1% but lower than the previous 4.5%. The Pound Sterling faces downward pressure as investors anticipate two rate cuts by the Bank of England this year, with the initial move likely in August or September. BoE Governor Andrew Bailey stated on Tuesday that there is compelling evidence indicating a decline in UK inflation. The key question for BoE policymakers, according to Bailey, is how much additional evidence is needed before considering interest rate cuts.

Key Data

7.00 Consumer Price Index (MoM) (Mar) Act. 0.6% Exp. 0.6% Prev. 0.6%
7.00 Consumer Price Index (YoY) (Mar) Act. 3.2% Exp. 3.1% Prev. 3.4%
7.00 Core Consumer Price Index (YoY) (Mar) Act. 4.2% Exp. 4.1% Prev. 4.5%
17.00 Andrew Bailey Speech

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The Euro faces challenges amid growing speculation that the European Central Bank will commence interest rate cuts in June, driven by a tepid Eurozone economic outlook and moderating core inflationary pressures. During an interview on Tuesday, ECB President Christine Lagarde suggested that rate cuts are imminent, barring any significant unforeseen developments. Lagarde remarked that the ECB is observing a disinflationary trend that aligns with expectations. Additionally, she noted that geopolitical events’ influence on commodity prices has been relatively limited thus far.

Key Data 

18.45 Christine Lagarde Speech

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Federal Reserve Chair Jerome Powell’s remarks on Tuesday at the Washington Forum bolstered the greenback. Powell noted that recent data indicates limited progress on inflation this year, suggesting a prolonged period before reaching the 2% target. This commentary contributed to a more hawkish stance and provided support to the US Dollar.

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