28th March 2017 Market Update
Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report.
?? 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.
31/03/2017 – March Inflation figures.
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.
Find out more about our FX Dealing Service for personal & business international payments. We’re committed to giving all clients the best rate possible, along with flexible and personalised service. Save time and money by reducing risk through a simple and efficient service.