Budget Week

7 March, 2017

Grace Rae

Yesterday saw no significant movements in the major pairings. Against the Euro, we saw a small boost in the morning, and then the pair continued to remain at the same levels as the trading day progressed. US Factory Orders data came in as expected at 1.2%, so no big reaction from the market. Against the Dollar, rates again traded within a tight range but closed 40 pips lower than where it opened. The Dollar has been strengthening off the back of an imminent rate hike talks back in focus, so we have seen a shift in dollar strength.

On the economic data front, in the early hours this morning Australia released their RBA Interest Rate Decision which came in unchanged at 1.5% and today European GDP due at 10:00 am followed by US Trade Balance during lunchtime at 13:30 pm.

Uncertainty around Brexit negotiations have returned to the forefront, and recent UK data suggesting a slowdown in the economy has impacted rates over these last few day, now trading almost 2 cents below where they were this time last week. This is also a big week for the markets as it is the budget week. Expected to take place tomorrow, this will be the last UK spring budget after Chancellor Philip Hammond announced that the spring and autumn budget would be scraped and a major Autumn Budget will be undertaken in their place. Always a big market mover as investors will be looking to see what changes in the budget are likely to impact the economy the most. If a cause for concern is imminent, as well as seeking to see how the government plan to allocate funds to ease any Brexit related headaches that may arise during the Brexit journey.

If you have a future requirement and are concerned about future impacts the EU exit could cause to your need, then please do get in touch with a member of the CI team. We can discuss the various options we provide to help you achieve the best possible rates in this currently harsh market climate.