The British Pound gained strength from Bank of England Chief Economist Huw Pill’s hawkish statements on Friday, which stated that the first drop in the main interest rate is still some time away. Furthermore, the recent risk-on bounce in global equities markets provided some assistance to the British pound. Looking forward, there is no key market-moving data scheduled for publication today.
The Euro capitalised on broad-based US Dollar weakness, closing the week with a slight gain. Today, the Eurozone Sentix Investor Confidence Index rose from -12.9 in February to -10.5 in March, reaching its highest level since April 2023. Later this week, all eyes will be on the European Central Bank’s monetary policy decisions on Thursday.
The US dollar recovered from recent losses as markets looked for fresh clues on US interest rates from the Federal Reserve and critical payrolls data this week. Furthermore, uncertainty about interest rates has brought Fed Chair Jerome Powell’s upcoming testimony into sharp focus, with analysts expecting him to basically restate that interest rates will stay sticky in the short future.
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