Money News Overview Tuesday 23rd January 2024: ECB interest rate announcement the key release this week

This week has started quietly with no real market moving data being released, so we look ahead to Wednesday’s releases. 

Wednesday starts with a handful of Purchase Manager Index releases, with markets forecasting the UKs manufacturing sector to rise to 46.7 which is still below the 50 point growth mark. 

Investors will be looking at Thursday for the main release of the week, with the European Central Bank posting their interest rate announcement. 

Markets expect the ECB to hold rates at 4.5% after inflation stayed at 2.9%, a close eye will be kept on the ECB press conference to see where they stand on potential rate cuts for the year ahead. 

Elsewhere on Thursday there will be the US Employment figures, this will come in alongside US Gross Domestic Product figures, Markets expect this to fall to 2% a sharp decline from 4%. 

Looking at how the pound fairs in the currency market, we have seen the pound make some gains against both the euro and dollar.  

The pound is currently sitting nearly 200 basis points above last years yearly average, likewise for the pound to dollar rate. However, expect this to change as the week goes on.  

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