The British Pound gained some impetus following last Thursday’s mixed PMI data for February. In reality, MUFG Bank economists have remarked that recent UK PMI data indicates an improved outlook, and the technical recession that occurred in the second half of last year appears to be coming to a conclusion. Looking ahead, there is nothing on the UK calendar that will affect the Pound or UK interest rate predictions in the next days.

Last Friday’s hawkish comments from ECB members provided some support for the euro. Furthermore, the ECB Monetary Policy Meeting Accounts for January showed that policymakers remained cautious about relaxing monetary policy. They agreed that it was premature to consider rate decreases during the discussion. On that topic, investors are likely to scrutinise ECB President Christine Lagarde’s address later today.

The US dollar regained ground as investors braced for a bombardment of interest rate and inflation data anticipated later this week. In reality, the dollar is still hovering at three-month highs, as a chorus of Federal Reserve officials warned that the bank was not in a hurry to start cutting interest rates early, especially with inflation remaining sticky.

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