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March 2017

UK Chancellor Philip Hammond’s Budget the focus today

Published: Wednesday 08 March 2017

  • UK Chancellor Philip Hammond’s Budget the focus today
  • US awaits ADP employment figures
  • German industrial production up 2.8%
By Zeta Webber
Yesterday, Sterling fell to a seven week low, below $1.22, due to mounting concerns about Brexit and the prospect of interest rate rises in America.
The House of Lords passed an amended bill on Brexit yesterday, after having the highest turnout since 1831. The vote was passed by 366 to 268. That stresses a guarantee of a “meaningful vote" by the Parliament on the outcome of Brexit talks and is seen by analysts as securing veto power on any final agreements. The bill will now return to the House of Commons to decide whether to accept the Lord's amendments or not. The debate could probably be held next Monday. UK Brexit Secretary, David Davis, described the result of the vote as "disappointing". Davis made assurances that he would "overturn these amendments in the House of Commons." The Pound continues to fall, as traders begin to price in the risk of long and protracted negotiations with the EU.
This morning, Germany released industrial output data, which jumped back in January. It rose by 2.8%, which was - 0.1% better than expected. This marks a solid start to the year for German manufacturers, with upbeat data, adding to the robust economic releases from the Eurozone, which have helped the Euro stabilise at around 1.05.
The main focus of the day will be on the UK Chancellor, Philip Hammond, who will deliver his first Budget speech this afternoon. Philip Hammond will unveil his spending plans and any tax hikes or cuts in a speech to the House of Commons, followed by a debate. Sterling is unlikely to react significantly, unless there are any major announcements. Although the Chancellor is likely to present an upbeat picture of the UK economy, he has already stated that he will probably keep his powder dry ahead of triggering Article 50.
This afternoon in the US, only the February ADP Employment report is of importance.

American Laws

It is illegal to fish for whales on Sunday
No one may be arrested on Sunday or on the Fourth of July
Any person who leans against a public building will be subject to fines
It is unlawful to eat a doughnut and walk backwards on a city street 


Today's Major Economic Releases

GBP 12:30 UK: Annual Budget Release    
CAD 13:15 Canada: Housing Starts 207k 205k
USD 13:15 US: ADP Non-Farm Employment Change 246k 205k
CAD 13:30 Canada: Building Permits -6.6% 3.1%
CAD 13:30 Canada: Labor Productivity 1.2% 0.4%
USD 13:30 US: Revised Nonfarm Productivity 1.3% 1.5%
USD 15:30 US: Crude Oil Inventories    

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