Eurozone Consumer Confidence Exceeds Expectations
The economic calendar was relatively quiet, with US weekly jobless claims largely in line with forecasts. However, Eurozone consumer confidence exceeded expectations, adding to early signs of an upturn in European macroeconomic data in recent weeks.
Fed Policy Outlook: Mixed Signals
On the monetary policy front, Atlanta Fed President Raphael Bostic adopted a slightly dovish tone in media interviews, downplaying the risk of a renewed inflation surge and predicting that the Fed funds rate will be cut twice more this year.
However, other Federal Reserve members provided more cautious remarks regarding the pace and timing of rate cuts, leading to some uncertainty in the market. As a result, the US dollar weakened, falling 0.7% against the euro and 0.6% against the pound.
UK Retail Sales Exceed Estimates
Retail sales in the United Kingdom exceeded estimates in January, indicating stronger-than-expected consumer spending despite ongoing economic challenges. This data contributed to sterling’s gains against the dollar.
Key Economic Releases to Watch
Today’s key release will be the flash reading of February PMI numbers, which will provide insights into economic activity across key sectors.
For businesses navigating currency fluctuations and market volatility, staying informed is crucial. If you’d like to explore how these trends may impact your business or identify opportunities within market movements, get in touch with our specialists today.