Daily Market Commentary 26th March 2024

Markets opened the trading week, still consuming the plethora of Central Bank rate decisions and the speculations, that followed. The Federal Reserve, The Bank of England and the ECB are all expected to cut rates this calendar year, it will be just when and how many times. This has led equities to record highs and bond yields to begin the long decline. The Netherlands finally emerged out of their ‘technical recession’, with a positive GDP reading for Q4, of 0.4% growth. This may be a signal, that with an environment of falling interest rates, European economies may begin to improve. The EUR bounced to 1.0830, while the GBP regained 1.2600, following recent falls.

The softer reserve allowed the AUD to consolidate above 0.6500, while the much-maligned NZD looked to regain 0.6000. The Bank of Japan released minutes of their momentous meeting, confirming the discussion of renovating monetary policy and moving away from negative interest rates. The moves were expected to have a positive impact on the Yen, but the opposite has occurred, with the JPY trading down to 151.50. There is now talk of intervention to support the currency. The next two trading weeks are abbreviated due to Easter Festivities.