Market insights

US Interest Rate Cut Likely

The US reported a lower than expected inflation number yesterday.

Analysts had expected an annualised growth rate of 2.4%, and it came in at 2.3%.

This could prompt a cut to the US base rate next time again.

What will be interesting is if it's 25 points or 50 points down to 4%.

With a lot of the global economic uncertainty now diminishing from the beginning of April, there could be a normalisation of market conditions ahead.

Generally speaking stock markets and currency markets dislike uncertainty, but money looks to be coming back to the table.

The UK's hike in unemployment and the report on vacancies declining could be a concern for the Pound, but for now, Sterling seems to be in a bit of ascendancy.

Looking forwards there's a few stories on the horizon.

UK preliminary GDP numbers out tomorrow hope to see a quarterly growth of 0.6%. This will be watched like a hawk with recent economic numbers being a bit of a mixed bag.

After that it's the Eurozone GDP number with 0.4% quarterly growth expected.

Eyes will then turn to the US for their retail sales numbers at late lunch tomorrow.

Business news is thin with chatter around the US Presidents Middle East trip, and the M&S data breach.

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Economic calendar

UK: Thursday 07:00 Preliminary GDP Report

EUR: Thursday 10:00 Preliminary GDP Report

US: Thursday 13:30 Retail Sales

As ever we look forward to keeping you in the loop and look out for our next update.

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