Key Headlines

•            Hot CPI number drives USD

•            US PPI and ECB in focus today

Recap

A higher-than-expected CPI number yesterday saw US 10-year treasury yields soar to 4.5%, taking GBPUSD and EURUSD towards the lows of this year, a key support level that continues to hold, with dip buyers holding up each respective pair. Market pricing now sees the Fed's rate cut now more likely coming in September.

Today’s Overview

Yesterday's US CPI numbers now rules out any rate cut prospects for June and July by the Fed, with markets putting a 90% chance of a hike in September and only pricing in 40 bps worth of cuts this year. Both GBPUSD and EURUSD are trading at 2024 lows, with markets still on the side-lines waiting to drive USD stronger. Today's attentions falls on the PPI inflation numbers, and an uptick on this data will likely cause more USD gains. Also, we wait for the ECB. No change is expected in interest rates, but we look out for what the communication is from Christine Lagarde.

Equals Market Analysis– 11^th April 2024

Today’s Rates

Today's Interbank Rates at 09:30 am against GBP movement.

GBP>EUR – 1.1686

GBP>USD – 1.2561

EUR>USD – 1.0743

GBP>CAD – 1.7181

GBP>AUD – 1.9248

GBP>SEK – 13.451

GBP>AED – 4.6104

GBP>HKD – 9.8410

GBP>ZAR – 23.620

GBP>CHF – 1.1470

GBP>PLN – 4.9829

Speeches

•          EUR: ECB Lagarde

•          GBP: BoE Greene

•          USD: Fed Williams, Barkin, Collins, Bostic

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