Spring Budget Announcement Today
13 March, 2018
Yesterday morning, barring an initial jump of GBP-EUR of half a cent and GBP-USD of 30 pips, which was slowly lost over the course of the next 20 hours, the pound has flatlined against both the Euro and the USD. With no significant data releases from the eurozone and only the monthly budget statement from the US yesterday, which came in above expectations and far better than the previous number, at $-215B, seen a very good figure, down from $49B the previous month. However, this saw almost no movement in the markets.
Today, MEPs will debate an advisory resolution of the relations between the UK and Europe post Brexit. The main document relating to this will be put to a vote tomorrow, so expect further market volatility leading up to and after the result is announced. The EU’s next long-term budget will also be discussed today.
There is a distinct lack of data released from Eurozone today with the moan focus on the Spring budget in the UK and CPI inflation reports from the USA. The last time there was a budget in the UK, the market barely moved. However, due to increasingly tense Brexit negotiations, this could well mean further weakness for the pound if any of the amendments are poorly received by investors and traders. At 2:30 pm the BoC supremo, governor Poloz, will give a speech. At 23:50 the BoJ will have their monetary policy meeting. For those of you wishing to buy Euros or US Dollars , it may be a good idea to buy your currency BEFORE volatility returns to the markets, particularly if you don’t perceive yourself as much of a gambler. Give us a call!