The market attitude was modest and cautious yesterday, compared with the previous day’s brighter atmosphere. Given the calm data schedule elsewhere, yesterday’s macro news flow centred on the US economy.
US Federal Reserve members warned yesterday that, despite this week’s lower-than-expected US inflation report, interest rates may need to remain higher for longer. In contrast, Bank of England policymaker Greene stated that there is evidence that the UK employment market is becoming more balanced, implying that she is leaning towards supporting an interest rate drop.
Looking ahead, today’s macro schedule is pretty calm as we approach the weekend. Today’s data schedule is quiet, with nothing noteworthy in the UK. In the Eurozone, the April CPI will be a second reading and is unlikely to be significantly different from the previous estimate.
This put annual inflation at 2.4%, unchanged from March and the joint lowest rate of the year. Meanwhile, the core rate dropped to 2.7%, down from 2.9% in March and the lowest level since early 2022.
In the United States, the only notable release is the April update to the leading index. That statistic is intended to forecast future economic trends, including turning points in economic activity.