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Pound weathering the storm while other currencies struggle

Published: Wednesday 27 March 2019

  • Lots of US data likely to be overshadowed by US-China trade tensions
  • Brexit boredom continues
  • Pound weathering the storm while other currencies struggle
  • Next week’s ones to watch
By the Halo Financial Team

Lots of US data likely to be overshadowed by US-China trade tensions
In the US, the latest growth and consumer confidence figures, Trade Balance and Current Account data are all released this week, but the US-China tensions are likely to be the main focus for markets. It’s a Super Thursday of sorts for the US in terms of data, on Thursday 28th March, however, with the fourth quarter and final Gross Domestic Product (GDP) figures due to be released and predicted to be lower than previously.

These results, along with the Federal Open Market Committee (FOMC) Member speeches and the latest Unemployment Claims data, are likely to be watched closely. Consumer Confidence figures, released on the same day, could show an uptick after more favourable conditions in February, so it will be interesting to see what effects, if any, these results will have on the US Dollar.

Brexit boredom continues…
Across the Pond, Brexit is, as ever, the beast that won’t budge and everyone is waiting for some clarity. Anything? Anyone? Our intrepid team, like the rest of us, will be watching the outcome of this evening’s vote and will let you know what happens and what it could mean…

What we do know is that the various votes are likely to continue beyond tonight, as Members of Parliament seek support for viable options, but they only have until 12th April to offer an alternative to the EU.

Pound weathering the storm while other currencies struggle
Meanwhile, the Pound is holding up well, despite all the politics. Sterling strengthened in the run up to today’s votes on apparent Brexit progress – of any kind – and with its major currency partners experiencing their own sets of troubles, the Pound has not been pummelled into submission.

The Euro continues to flounder, following disappointing economic data and its central bank, the European Central Bank (ECB) appears none the wiser. Germany’s dismal results in recent times are a cause for concern for the wider Eurozone economy. The New Zealand Dollar fell following its central bank the Reserve Bank of New Zealand (RBNZ) keeping interest rates at current levels.  

Next week’s ones to watch
Next week sees a slew of data across jurisdictions, with construction, manufacturing and service sector Purchasing Managers’ Indices (PMIs) aplenty. Central banks are all erring on the side of caution in current speeches and monetary policy decisions – there is definitely tension in the air and there are concerns across the board of a global economic slowdown.

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