The British Pound regained its position as the top-performing G10 currency of 2024 after reporting inflation that was higher than expected last week. There are no significant economic events scheduled for this coming week that could affect the value of the currency. Because of this, market players will be keeping a careful eye out for any changes in economic data or policy that may have an impact on Sterling’s trajectory in the near future.
Due to the US and UK markets being closed yesterday—the former for Memorial Day and the latter for a bank holiday—the Euro was comparatively muted. Market players will be closely watching Germany’s inflation data on Wednesday and the Eurozone’s inflation data on Friday. Expected annual growth rates for the German headline CPI are 2.8% and the Eurozone equivalent is 2.5 percent.
Due in part to a wider decrease in cross-market volatility and an increasing willingness for risk among investors, the U.S. Dollar slightly declined this morning. This change is partially explained by investors bracing themselves for a soft US economic landing ahead of the imminent release of core PCE inflation data.
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