• European markets surge higher after recent jitters.

  • UK data sees GDP come in at 0.1%.

  • US banks in focus, as earnings season gets underway.

European markets have enjoyed an upbeat start to the day, with all the major indices gaining over 1% to leave behind the jitters that have dominated much of the week. Concerns over the likely delay to the Fed’s first rate cut looks to have eased for now despite Wednesday’s higher-than-expected inflation reading. Instead, traders in Europe can look towards the projected ECB and BoE June rate cuts for bullish inspiration, while the inception of US first quarter earnings season brings a welcome distraction from the Fed’s struggles in bringing inflation back down to target.

This morning saw a raft of UK data released, with the 0.1% February GDP reading helping to allay fears of a continuation of the recession into Q1 2024. The one area of weakness within the GDP report came from construction, although the 1.9% contraction was overshadowed by a 0.1% services expansion and 1.1% industrial production figure. All-in-all the Bank of England appear to have done a good job in guiding the UK economy into a relatively soft landing, with inflation expected to move back down to target in the coming months. 

Today sees the big banks kick off earnings season in the US, with JP Morgan Chase, Wells Fargo, Blackrock, Citigroup, and State Street all reporting before the bell. With the US economy holding up relatively well over the course of the first quarter, there is a hope that the banks will be able to take advantage of the higher rates to bring strong profit margins over the period. Crucially, this year is expected to see a shift away from overreliance on tech growth and instead see a more widespread expansion in growth rates as the economy benefits from a more growth-focused policy mix from the government and central bank. Unfortunately, that wider expansion in the economy may be delayed should the Fed continue to hold off in response to stubbornly high inflation.

This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Majors

Cryptocurrencies

Signatures