Euro area CPI
Inflation in the euro area slowed but remained well above the European Central Bank’s 2% target.
Market Overview
UK economy
According to the Office for National Statistics (ONS), the UK economy showed growth of 0.1% in the first quarter of 2023.
US CPI
The main macroeconomic data this week was inflation in the United States. Both headline and core data slowed in April 2023.
FED
On Wednesday, the Federal Open Market Committee (FOMC) raised the fed funds rate by 25 basis point at its May 2023 meeting.
US GDP
The Fed’s efforts in bringing inflation down to its 2% target are bearing fruit. Recent US inflation data showed that CPI cooled off to 5% year-on-year in March 2023.
UK economy
The UK economy was stagnant in February 2023 according to the Office for National Statistics (ONS) estimates.
US CPI
All eyes were on US inflation, the last CPI data before the next Federal Open Market Committee meeting on May 3.
Euro area CPI
According to Eurostat, the annual consumer price index (CPI) slowed to 6.9% in March 2023, from 8.5% in February. The headline inflation was slightly below the market forecasts of 7.1%.
FED
The market has been shaken by recent events in the banking sector, with the solvency problems of some US regional banks and the UBS takeover of Credit Suisse.
