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Pound picks up the pace

16th March 2018 Market Update

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?? GBP – The pound rallied against both the dollar and euro yesterday and held its relatively strong position. This was despite there being a lack of data out. With regards to Brexit, the prime minister is now hoping to move talks onto trade and is planning to get a post-Brexit transition period signed off at the European Council summit of EU leaders on March 22-23rd. The Irish border remains the biggest obstacle however – the EU have said they’re not trying to be tough they just need clarity.

?? EUR – Yesterday French CPI came in above expectations at 0.0%, however this is still a particularly weak reading. Today Europe’s CPI is expected to come in at 1.2%, this is the same as the previous reading. Unless the figure deviates from this, it is unlikely the euro will move in response.

?? USD – The Philly Fed Manufacturing Index came in below expectations, and the unemployment claims came roughly in line with expectations. Therefore, there was little market movement in response. This afternoon building permits are expected to contract slightly to 1.32 million, however this is only a slight difference to last month’s reading.

 

Key Announcements

?? EUR
10:00am: Final CPI y/y

?? USD
12:30pm: Building Permits

 

Summary: Yesterday was a quiet day in terms of economic data. US unemployment claims came in roughly in line with expectations, and therefore had very minimal impact on the market. The Philly Fed Manufacturing Index also came in slightly below expectations.
 
Today CPI is being released from Europe, and this is expected to come in line with the previous reading at 1.2%.
 
US Building permits are expected to contract slightly, however historically this has had little impact on the dollar.

 

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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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