29th March 2018 Market Update
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?? GBP – The pound had a short-lived surge in the early hours of yesterday morning as according to The Times, the UK government may soon release its plan on the solution to the Irish border issue, which is perhaps one of the biggest issues for the Brexit negotiations. However, worse than expected readings which track trends in British retail and wholesale sectors weighed on the pound keeping it subdued.
Today we await the revised growth figure for Q4 2017, though no changes are expected and the data could be a non-event. The close today may see some volatility as investors close off positions going into the long Easter weekend.
?? EUR – Another quiet day for the Eurozone, with only German consumer confidence beating expectations in the early hours. The euro remains fairly well supported though with little to knock the low volatility seen in the single currency.
Today, German unemployment figures and inflation readings will be watched for but unlikely to make much of an impact on the rate.
?? USD – The dollar found some support and pushed back from recent lows against the pound with an upward revision to the 2017 Q4 growth figure today. Thus, further suggesting positive growth momentum in the US economy.
Today, markets will await the core PCE figure, which is used to define underlying inflation in the US and any move towards the 2% target would be seen as further positivity in the US economy.
09:00am: German Unemployment Rate expected to drop to 5.3% from previous 5.4%
13:00pm: German CPI YoY expected at 1.5% from previous 1.2%
09:30am: UK GDP QoQ expected flat at 0.4%
13:30pm: US Core Personal Consumption Expenditure expected flat at 1.5%
Summary: The pound lost ground against the dollar across the day as the positively revised US GDP figures helped the dollar pull back losses. There was very little movement on the euro, though we may see some volatility ahead of the holiday weekend this afternoon.
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