Daily Update - 21st March 2019
GBP Consumer Price Index resulted positive but yet Sterling did not gain grounds against rivals due to major Political Ailments such as rejected Brexit Proposal to the Parliament. US Fed Reserve kept its rates unchanged leading to a Lose Stance towards the Dollar globally and Fed also signaled that they will be keeping a tap on the Aggressive future policies. For the EUR, convergence in the ECB and FED’s outlook towards monetary policy will provide support for the EUR. Any risk aversion would likely limit any upside later in the day, however. It’s a big day for the Pound. On the data front, February retail sales figures are due out. While forecasts are for a moderate increase in sales, the Pound would likely find some support early on in the day. Outside of the numbers, the BoE will deliver its March monetary policy decision later in the day. With uncertainty over Brexit continuing to linger, there’s unlikely to be any surprise guidance from Carney and the team. On the Brexit front, the EU Summit kicks off today and British Prime Minister Theresa May will be looking for approval of the Brexit extension. According to reports, the extension request was for just 3-months. With Parliament having failed to agree on a deal, how member states view the timeline will be of interest. The EU may force Britain into a lengthier extension, which should be Pound negative. It’s a busier day on the economic calendar from US. The weekly jobless claims and March Philly FED Manufacturing PMI numbers are due out. Both data sets are likely to influence, whilst 4th quarter current account figures will likely be brushed aside. Outside of the numbers, more U.S-China trade war chatter may also be on the cards. Comments on Wednesday raised some concerns over whether an agreement can be reached ahead of an anticipated Trump – Xi meeting next month.Yesterday’s Market
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