Dear Reader,

Today's overview of economic news and market action:

• ECB left monetary policy on hold last week, as expected …
• However, Eurozone futures softened after the meeting …
• Meantime, US data provided a supportive backdrop to risk appetite …
• Currency-wise, the euro was on the defensive throughout last week … 
• EUR/USD opens today near the midpoint of $1.08-1.09 …
• EUR/GBP is in the lower half of 85-86p …
• This week, the Fed and BoE will be in focus …
• A busy data schedule includes US payrolls and EZ flash HICP inflation …

The Lady’s Not for Turning? 

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 
4%, as expected.

Markets and central banks remain at odds on the path for interest rates

Further significant declines in inflation rates look to be in store this spring virtually everywhere, as large price increases a year earlier drop out of the annual comparison.

World economy grew at a very modest pace in 2023. Subdued growth expected again in 2024, with continuing weak performance by most advanced economies in particular. Inflation fell sharply last year and further moderation in price pressures anticipated in 2024.

ECB on hold for third straight meeting

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 4%.