A sparse economic calendar has kept markets largely subdued – but behind the scenes, currency movements and anticipation over the US Federal Reserve’s next steps are keeping investors alert.
Eurozone Inflation Falls, But Has Little Market Impact
The only notable data release yesterday was Eurozone producer price inflation, which dropped more than expected – falling to 1.9% in March from 3% previously.
This undershot forecasts of 2.5%, but the release had little immediate effect on trading, with markets largely brushing it aside.
Currency Movements: Sterling Gains, Euro Weakens, Dollar Pressured
Despite the lack of major data, currency markets have seen some volatility over the past 24 hours.
Sterling started the session on a stronger footing, while the euro remained on the defensive. Meanwhile, the US dollar faced renewed pressure overnight – a reflection of ongoing uncertainty ahead of today’s central bank announcement.
Spotlight on the Federal Reserve’s Policy Decision
Today’s main event is the conclusion of the US Federal Reserve’s FOMC meeting.
While interest rates are expected to remain unchanged, the market’s attention will be fixed on the Fed’s tone: Will they hint at any changes to their economic outlook? What’s the latest thinking on tariffs? And crucially, how is the Fed balancing political pressure with its independence?
These insights will be key to shaping global investor sentiment and could lead to notable currency moves.
Eurozone Retail Sales Expected to Stall
Also on today’s radar are the latest Eurozone retail sales figures.
Expectations are low, with forecasters predicting flat results for March. Though not headline-grabbing, this data may still feed into the broader picture of slowing demand across the region.
Make Sense of Market Shifts with Qu Money
With markets moving on central bank commentary, inflation signals, and currency fluctuations, it pays to stay ahead.
For tailored advice on protecting your business from currency risk – or for seizing opportunities in the current environment – get in touch with a Qu Money expert today.