Dear Reader,

Today's overview of economic news and market action

• Quiet day on markets in the run-up to the Fed meeting outcome …
• As expected, the Fed left policy on hold …
• US futures contracts softened slightly following the press conference …
• Against this backdrop, the dollar was under some downward pressure …
• Sees EUR/USD open above the $1.09 mark …
• GBP/USD us changing hands up at the $1.28 handle …
• EUR/GBP remains near the midpoint of 85-86p …
• Today, the monetary policy spotlight shifts to the BoE …
• Data-wise, the flash PMIs for the US, Eurozone and UK (Mar) are due …

World economy grew at a very modest pace in 2023. Subdued growth expected again in 2024, with continuing weak performance by Eurozone in particular. 

Inflation fell sharply last year and further moderation in price pressures anticipated in 2024.

The March meeting of the ECB’s Governing Council saw the central bank maintain its key deposit rate at 4%. This outcome was in line with expectations.

Inflation Data Dampen Rate Cut Expectations

This week is set to be an important period for markets as three key central banks (Fed, BoJ, BoE) announce monetary policy decisions.