- 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.