The European Central Bank will today announce their latest Interest rate decisions. It is widely expected that they will hold at 4.5% for another month. Although as inflation falls across the eurozone, markets are pricing in the first rate cut for June.
Following the interest rate announcement, investors will be keen to tune into the press conference to see what comments are made regarding rate cuts.
Later this afternoon sees the release of the US Employment figures. Unemployment Claims are expected to fall to 215k (from last week’s 221k).
Alongside this Producer Price Index is another key release for the US today, with Core PPI forecasted to come in on the upside at 2.2% (from 1.6%).
Looking ahead this week, the UK publishes its Growth Domestic Product. It is expected to come in at 0% month on month. This will be released in concurrently with Industrial Production, with markets expecting to see growth in the manufacturing sector.
On the currency front, the pound had a dreadful day against the dollar yesterday falling a total of 140 points off the back of the US inflation data.
For the pound to euro rate there has been no movement of interest. Currently sitting around the yearly average. However, this will likely be volatile this afternoon with today’s releases.