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Markets braced for Article 50 being triggered

28th March 2017 Market Update

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?? GBP – Yesterday there was no data released from the UK. However, the pound picked up particularly against the US dollar – however this was more due to dollar weakness. Across the board sterling held firm despite the risk posed by Article 50 which is being triggered tomorrow.

?? EUR – The only significant piece of data yesterday was released from Europe, where the Ifo Institute for Economic Research released its business climate survey. This produced a very positive forecast, however had minimal impact on the euro.

?? USD – Yesterday the dollar index dropped to lowest levels since November. The dollar has weakened since Trump failed to pass his health bill on Friday. His inability to pass changes to “Obamacare” suggests that he will struggle to pass through Congress his policy proposals. Part of the reason that the dollar has been so strong, is because a number interest rate rises are expected this year to counter Trump’s fiscal stimulus. However, because there is less confidence that his policies will pass Congress, the markets have responded by lowering the likelihood that interest rate rises will go ahead, thus weakening the dollar.

The only thing of note from the US today is consumer confidence, which is expected to fall slightly.


Key Announcements

?? CAD
31/03/2017 – March Inflation figures.

?? USD
10.00am – CB Consumer Confidence.


Our View:Whilst Sterling maintained its momentum yesterday, the triggering of Article 50 still poses potential risk. Clients with any immediate requirements are encouraged to speak to their dealer to discuss potential fall out, as well as managing any future currency requirements.


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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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