Key Headlines

•            GBP: UK Retail Sales pick up

•            EUR: Awaiting ECB meeting

•            USD: Inflation data front and centre

Recap

Currency markets saw another rangebound trading session yesterday ahead of today’s key US Inflation data and minutes from the recent FOMC meeting. Sterling eked out small gains after the British Retail Consortium reported UK Retail Sales rose at their fastest pace since August, hitting 3.2% year-on-year versus expectations of 1.8, as early Easter discounting drove up food sales. The US dollar continues to trade sideways despite rising Bond Yields, as expectations of a soft-landing gain in strength.

Today’s Overview

All eyes are firmly focused on the US inflation data due out later today, which is expected to show a monthly increase of 0.3%. Recent commentary from the Fed hawks, reducing their forecasts for rate cuts this year from 3 to “1 or 2”, has lifted US bond yields, but interestingly has to date failed to rally the US dollar. The improvement in general market sentiment, as evidenced by rising global equity markets, could be at play here as riskier currencies continue to attract inflows.

With rising prices for commodities like Oil, Copper, and Cocoa, central banks may well have their work cut out for them to finally conquer the inflation demons.

Equals Market Analysis– 10^th April 2024

Today’s Rates

Today's Interbank Rates at 09:19 am against GBP movement.

GBP>EUR – 1.1688

GBP>USD – 1.2688

EUR>USD – 1.0854

GBP>CAD – 1.7210

GBP>AUD – 1.9159

GBP>SEK – 13.386

GBP>AED – 4.6574

GBP>HKD – 9.9380

GBP>ZAR – 23.573

GBP>CHF – 1.1466

GBP>PLN – 4.9885

Speeches

•          None today.

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