The UK’s economy experienced growth of 0.2% in January, mostly owing to the recovery of service sector productivity. Growth continued in February with an additional 0.3%, surpassing economic forecasts. This upward trend was primarily fueled by the growth in retail and wholesale trade along with the health and social work sectors.
However, the manufacturing sector faced a slight dip in output, contributing to the balance in overall economic growth. Despite Brexit uncertainties and global trade tensions slowing the growth rate to 0.1% in March, the UK economy is showcasing resilience, according to economists.
Concerns are mounting over a potential rise in core inflation due to a noticeable 0.4% hike in the Consumer Price Index (CPI) in February 2024, resulting in a yearly core inflation rate of 3.8%. This surge may put significant pressure on the economy, impacting businesses and consumers through higher prices for goods and services.
Furthermore, the Federal Reserve may be compelled to harden the monetary policy, potentially effecting borrowing costs, business investments, and future economic growth. Policymakers and investors monitor the inflation trends and the ensuing economic repercussions closely.
Luxury automaker Ferrari experienced a surge in stock value, reaching a record high due to robust market demand. Despite fluctuations, Bitcoin has sustained its momentum. The growth of US CPI has prompted market adjustments, impacting currency pairs like EUR/USD, GBP/USD, and DXY.
In addition, the price of Silver increased slightly to $24.32, signifying market stability. Significant slowdown in the US job market influenced the Federal Reserve’s strategy, thus affecting Silver pricing. Upcoming CPI data is expected to play a pivotal role in determining the future trajectory of the Silver market.
Market analysts anticipate the release of CPI data next Tuesday, which, if lower than expected, could trigger an early rate cut, possibly leading to an upswing in silver prices. The likelihood of a rate cut could lead to higher inflation, a scenario that historically benefits silver prices. Manufacturers across major economies should increase industrial demand for silver, adding to its appeal.
Current market trends suggest a positive outlook for Silver, stemming from the cautious Federal Reserve policy and expected global economic growth. Technical analysis proposes the possibility of a surge with the next target set at $25.91, yet the market remains susceptible to an awaiting correction with a target at the support level of $23.55.
