Dear Reader,

Today's overview of economic news and market action

• Risk averse mood to investor sentiment yesterday
• Against the backdrop of rising bond yields
• Main equity indices lower on both sides of the Atlantic
• Currency-wise, dollar gave up some of its gains from Monday
• EUR/USD is back in the upper half of $1.07-1.08
• EUR/GBP continued to trade within 85-86p
• Today’s highlights include EZ Inflation (Mar) and a Fed Chair Powell speech

BoE gradually moving towards cutting interest rates

The March meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank keep its key interest rate unchanged at 5.25%. This decision was very much in line with market expectations.

Fed primed for 75bps of cuts in 2024, starting in summer 

The US Federal Reserve Open Market Committee’s second meeting of 2024 saw its key interest rate left on hold last night. The target range for the Fed funds rate remains at 5.25-5.50%, a 22-year high. 

PMI jumped to 52.2 in Feb, its highest level since June 2022. A sharp rise in output and employment, alongside growth in new orders were the key features of the survey.