GBP: The British Pound is still in a bullish state after the release of the Spring Budget last week. Market players are looking forward to the publication of UK employment statistics tomorrow, which includes the ILO Unemployment Rate and Employment Change figures. Also, analysts and investors are keeping a close eye on the February Consumer Price Index data.
EUR: Since there won’t be many significant data releases this week, the Euro has been holding its recent gains. This means that the European Central Bank’s interest rate cut bets will probably be adjusted, which will be the main factor influencing the movement of the common currency. The Euro could outperform its competitors if developments are delayed.
USD: Powell’s remarks from last week, which implied that policy easing may not be far off, put the US dollar on the defensive. It appears that the US central bank is gathering the proof it needs to be certain that inflation is steadily rising back to the 2% target. Powell’s dovish comments set off expectations for rate reduction in June, and as a result, the market is currently pricing in 100 basis points of overall easing this year.
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