26/07/2024
Written by: Ian Morley
Summary:
Yesterday, the dollar saw a decline while awaiting the US inflation report. Sterling remained stable despite April’s payroll numbers falling more than predicted, with wage growth staying high. BoE member Huw Pill hinted at a possible rate cut in June. The euro strengthened following a better-than-expected ZEW Economic Sentiment Index, indicating early signs of German economic recovery. Tensions between the US and China escalated due to sharp tariff increases on Chinese imports, including Electric Vehicles.
Speeches:
Market Insight:
Starting with Q1 GDP readings for Europe, anticipated to show growth up to 0.3%, a strong figure could lead to reduced expectations of rate cuts later this year, benefiting the EUR. Attention then shifts to the US for the release of CPI and retail sales data. With core CPI expected to dip slightly in April, further weakness in the USD can be anticipated, given its sensitivity to soft US data this month.