Investor sentiment was mixed on Thursday. In the eurozone, political uncertainty following the upcoming snap electionsin France, with Moody's even issuing a credit rating warning on the country, weighed on equities, with French bankssuffering the most.
Eurozone government bond yields ended the day lower after a choppy session and despite further hawkish commentsfrom some ECB officials, who stressed that the bank should wait before cutting rates again.
In the US, Treasury yields fell and stocks rose ahead of today's CPI report and the Fed's rate decision, with investorscurrently pricing in only one full cut of -25bps in 2024.
Against this backdrop, the USD hit a four-week high, while the Euro was weakened by the aforementioned politicaluncertainty depreciating against all of its major peers.