Topic: Daily Market Updates

Hawk watching in Europe has intensified as strong UK data releases continue to buoy rate hike bets, with even secondary data now capable of becoming market-moving.

The rebound in market sentiment runs the risk of being spoiled by volatility, while the pound strengthens alongside increasing risk appetite; in contrast, the euro gains support from a more stable and calmer market environment.

Despite the protests, business outlook remains stable as fears surrounding the banking sector ease, resulting in a decline in the demand for safe-haven assets; meanwhile, the pound is keeping a close watch on its March high.

The banking sector drives FX, with the pound and euro outperforming the US dollar.

Sterling’s post-BoE hike struggles coincide with two weeks of banking turmoil, while the Euro’s victorious run comes to a halt.

Janet Yellen’s statements end Powell’s risk rally; BoE’s rate hike is fully priced in; while the ECB feels vindicated and looks to further hike rates.