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- World economy continues to exhibit resilience. However, subdued growth evident again in 2024, with US outperformance starting to wane, UK accelerating, and Eurozone flagging.
- Core inflation remains sticky in some markets, particularly the UK, with consumer spending underpinning high core inflation, however, headline inflation is now close to target in all markets.
- Central banks have initiated rate cutting, but remain cautious on the future path of interest rates.
- Main currency pairs exhibiting some volatility as central bank policy diverged. Dollar has weakened of late as economic growth has softened.
- Expectation is for the dollar to weaken modestly from current high levels versus other majors.
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