2nd March 2018 Market Update
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🇬🇧 GBP – The pound fell yesterday as Brexit uncertainty continues to weigh. The EU’s Donald Tusk stated that the UK should not expect frictionless trade after leaving, while MPs suggested that there is no upside to Brexit for the British Car Industry. All eyes will now be on Theresa May’s Brexit speech today, amid friction over the Irish border. It is fair to say that investors are jittery and Sterling faces an uphill battle.
Yesterday’s Manufacturing PMI data came in as expected, but was largely ignored. Today’s Construction PMI figure is likely to also be overlooked. In addition to the Prime Minister, the Bank of England Governor, Mark Carney, is also due to speak this morning.
🇪🇺 EUR – The single currency remains buoyant amid a lack of data. As with the UK, investors are looking both toward Brexit developments and any change in ongoing monetary policy by the ECB. It has been suggested that they are unlikely to signal a policy shift this month, but could discuss dropping easing bias.
🇺🇸 USD – The dollar has clawed back significant ground amid ongoing encouraging economic data, including yesterday’s impressive Manufacturing PMI reading. At the same time, the new US Treasury Chair, Jerome Powell, testified before the Senate Banking Committee in Washington. He has been possible more positive than expected, stating that there are many reasons why long-term interest rates are going up. The committee also stated that it has confidence that the US economy will perform well over the next year or two.
There is no data due today.
N/A: Prime Minister May speaks (no set time)
09:30am: UK Construction PMI
10:00am: BoE Governor Mark Carney speaks
Summary: Sterling suffers a day of losses as traders eye Brexit talks. Key Brexit speech from Theresa May today amid friction over the Irish border. In addition to the Prime Minister, the Bank of England Governor, Mark Carney, is also due to speak this morning.
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