Money News Overview Wednesday 10th April: Markets to focus on US inflation

Global market stability helped the Pound Sterling hold off Euro strength following the European Central Bank's (ECB) decision to decrease interest rates by 25 basis points to 3.50% yesterday

Today will be dictated by a flow of US data later this afternoon.

Todays US March CPI report will be closely watched by markets and will be play a key role on future interest rate cuts.

It is expected that core inflation will ease to 0.3 percent for the month, allowing the annual rate to drop to 3.7 percent from 3.8 percent.

There has been an expectation of late that we could see the US cut interest rates as soon as June and is now priced in as a 50/50 probability. The new expectations come on the back of last week’s stronger than expected employment report.

Later this evening, the minutes of the March Fed policy meeting will be released, and again markets will look for any clues on future interest rate projections.

There is no UK or EU data today, therefore attention will solely be on the US data.

Focus does shift to the EU interest rate announcement tomorrow where it is expected that the headline rate will be left at 4.5 percent.

PPI US data will be released later in the afternoon. To cap off the week, we have the UK Growth figures and Industrial Production numbers released on Friday.  

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