A Briefcase of Mixed Messages

Hammond's budget fails to boost Sterling after a mixed bag of budget measures

Previous Day's Market Highlights

Yesterday’s key data release came from the United States where by personal spending increased faster than personal income, with income showing slower than expected growth. The main news of the day saw the UK Budget announcement with mixed messages coming from Chancellor Phillip Hammond. We saw growth forecasts increase and the deficit forecasts decline for the next 2 years, both key forecasts that should have strengthened Sterling; however it was the increase in the ‘Brexit contingency fund’ to £2bn that caught the eye which suggests an increase due to a No-Deal scenario looking ever more likely.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1232 1.1463 1.1212 2.19%
GBP/USD 1.2766 1.3257 1.2760 3.75%
EUR/USD 1.1365 1.1620 1.1356 2.27%
GBP/AUD 1.8013 1.8735 1.8011 3.86%
GBP/NZD 1.9502 2.0481 1.9641 4.10%
GBP/CAD 1.6733 1.7286 1.6598 3.98%

Today's Market Highlights

This morning there are a number of EU data releases. French flash GDP and EU GDP figures are expecting to show better than previous figures at 0.4% for the quarter, with the Italian Preliminary GDP release expecting to post a similar figure to the previous quarter. Keeping with the Eurozone, we have German and Spanish consumer inflation with German inflation to slow down compared to the previous month, and Spanish inflation to remain level.

Today's Economic Calendar

Time Currency Release Consensus Previous
9.30am EUR Italian Preliminary GDP (q/q) 0.2% 0.2%
10.00am EUR Preliminary Eurozone Flash GDP (q/q) 0.4% 0.3%
2.00pm USD CB Consumer Confidence