Hammond Set to Deliver Budget

UK budget is the main event on the calendar as sterling hits its lowest levels since September

Previous Day's Market Highlights

Friday saw Sterling continue its current trend of weakening across the major currencies. Whilst there was no specific data release that contributed to this, the weakness can be seen as a no-deal looks more likely as we approach the deadline of March 29th 2019. Friday also saw ECB President Draghi speak on inflation, where he says their headline inflation is likely to hover around the current level in the coming months, with underlying inflation expected to pick up towards the end of the year. With many of the EU states including UK making contingency plans for a No-Deal scenario. The UK Chancellor of the Exchequer Phillip Hammond advised on Sunday that The UK would need new tax and spending plans and may have to extend austerity measures if it is unable to secure an agreement with the European Union. The statement that will not help Sterling in its current downward trend and a potential sight into the Budget today.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1247 1.1463 1.1112 2.19%
GBP/USD 1.2829 1.3257 1.2796 3.48%
EUR/USD 1.1407 1.1620 1.1356 2.27%
GBP/AUD 1.8062 1.8735 1.8011 3.86%
GBP/NZD 1.9602 2.0481 1.9641 4.10%
GBP/CAD 1.6809 1.7286 1.6598 3.98%

Today's Market Highlights

Today Phillip Hammond is due to address parliament to present the annual budget and economic forecasts for the next year. With Theresa May suggesting that the 'end of austerity is in sight' there will be lots of keen eyes on what spending increases and decreases the government has decided upon. If the suggestion is that austerity is close to an end we can expect a boost for Sterling, however judging by the comments made by Hammond over the weekend; we could see a cautious approach to the budget as the uncertainty over Brexit looms. The European Commission is due to release their growth forecasts later in the day, with any revision of the current forecasts expecting to have an impact on the Euro. For the United States, personal spending is expected to increase higher than personal income which is expecting to remain level against the previous month. 

Today's Economic Calendar

Time Currency Release Consensus Previous
EUR European Commission Growth Forecasts
12.30pm USD Core PCE Price Index (y/y) 2.0% 2.0%
12.45pm USD Fed Member Evans Speech
3.30pm GBP UK Budget Report