Today there is a mixture of key economic releases in the US. Markets will be keen to see what the Unemployment claims numbers comes back in at, as it is expected to come in higher at 215k above forecasts of 212k.
The change in the value of all goods and services produced in the USA is forecasted to grow 2.4 percent in the first quarter of 2024. A higher-than-expected GDP release will show signs of support for the Dollar and the Feds hawkish stance on holding interest rates.
Although US GDP is expected to ease in the first quarter of this year following two stronger expansions at 4.9% (Q3 2023) and 3.3 (Q4 2023), consumer spending is still gradually increasing in the States.
Markets now expect only one or two rate cuts this year from the Fed. The delay of monetary policy will be closely watched by investors to see how it impacts the US economy.
The Pound descended last week following dovish comments from Ramsden outlining a June rate cut is on the cards. However, this week Pound Sterling has recouped some of its losses against the Euro and Dollar.