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Pound should hold its nerve today – but Spring Statement could stir up Sterling movements

Published: Monday 12 March 2018

  • Sterling holds up after Friday’s gains
  • Monday is very light on data
​​By David Johnson

Pound should hold its nerve today – but Spring Statement could stir up Sterling movements
Sterling held on to the gains it made on Friday. We start the new week with a very quiet day, so the Pound could well look in similar form into Tuesday. However, there is a meeting of the Bank of England’s Financial Policy Committee today. That committee focuses on the macro-economic factors affecting the bank. We don’t expect anything spectacular from them, but who knows in these crazy, mixed up times? Sterling traders will be readying themselves for tomorrow’s Spring Statement from UK Chancellor of the Exchequer, Phillip Hammond.
Eurozone has much to consider…
There is also a meeting of the Eurogroup members starting today. They have a lot to discuss. The Italian elections sent a shockwave through the EU and the Eurozone as populism seems to have broken out, but no firm government is in place yet. However, Germany has created a grand coalition; not ideal, but it does keep Mrs Merkel in office.  It is thought that Greece has completed its procedures to get the next tranche of EU support and of course there is the matter of Brexit, which will be mentioned in passing… probably.
Good news expected for Aussie Dollar – beware upwards movements overnight
Overnight tonight, Australia will publish home loan and business confidence data. One word describes the forecasts for both and that word is ‘upbeat’. You may find the Australian dollar is more expensive by the morrow and those selling AUD could get a little fillip.
That’s about the lot today. I am skipping past the Six Nations results because… grrr! Let’s catch up tomorrow, by which time, I promise I will have stopped sobbing intermittently.
Farm help
A farmer purchased an old, run-down, abandoned farm with plans to turn it into a thriving enterprise. The fields were overgrown with weeds, the farmhouse was falling apart, and the fences were broken down. 
During his first day of work, the town preacher stops by to bless the man's work, saying, "May you and God work together to make this the farm of your dreams!"  
A few months later, the preacher stops by again to call on the farmer.  Lo and behold, it's a completely different place.  The farm house is completely rebuilt and in excellent condition, there is plenty of cattle and other livestock happily munching on feed in well-fenced pens, and the fields are filled with crops planted in neat rows. 
"Amazing!" the preacher says. "Look what God and you have accomplished together!" 
"Yes, Reverend," says the farmer, "but you need to remember what the farm was like when God was working it alone!"

Today's Major Economic Releases

Market BST Data/Event Previous Expected
EUR All Day Eurogroup Meetings    
USD 18:00 US: Federal Budget Balance 49.2b -222.3b
NZD 23:45 Reserve Bank of New Zealand Governor Spencer Speaks    

For more information, infographics and the latest currency insights, visit www.halofinancial.com/news