22nd February 2018 Market Update
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?? GBP – Productivity, which has been the UK’s Achilles heel since the financial crisis, is showing continued indications of resistance, a report revealed yesterday. Strong readings in Q4 2017 had been dismissed as a flash-in-the-pan by economists, however, the latest figures will provide optimism for further long-term growth.
Mark Carney yesterday reiterated a cycle of potentially four interest rate rises over the next few years.
?? EUR – Disappointing PMI figures yesterday have done nothing to temper the vigour of the euro.
ECB Policy Meeting Minutes due today will provide indications of Mario Draghi’s ongoing strategy.
?? USD – Thus far, suggestions of the Fed’s intent to raise interest rates has done little to support the dollar. However, yesterday saw a strong rally on the back of positive Fed minutes.
With other western economies, such as the EU and Japan, now indicating that their own post-financial crises stimuli packages are coming to an end, the US is no longer seen as the only place for the safe storage of capital and is thus struggling to sustain momentum.
09:30am: GDP Second Estimates
12:30pm: ECB Policy Minutes
13:30pm: Core Retail Sales
Summary: Fed minutes revealed intent to continue with an interest rate tightening program. The dollar jumped on the release, rallying to weekly highs against the euro and pound.
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