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March 2016

Euro sliding against its major peers

Published: Friday 11 March 2016

Traders reacted to the headlines yesterday and are now assessing what they actually mean for the long term. We’ve seen the ‘hangover’ from yesterday with the Euro sliding against its major peers.  The Vice President of the ECB Constancio, has been on the wires this morning talking up the measures taken by the ECB, stating that ‘without our policies inflation would have been a third of a percentage negative in 2015 and would’ve stayed that way’.
The BofE’s commissioned survey for public expectation of inflation and rate hike expectation saw 38% of people expecting a hike in the next 12 months (over 35% previously) highlighting confidence despite an expectation for inflation to be lower over the next 12 months. The pound has slightly gained this morning and is possibly due to this.
The UK saw a widening of its trade balance in January with imports outweighing exports reasonably although we saw construction output boosted, expected -1.7 actual -0.8%. We also had some Chinese new yuan loans & aggregate financing data released of which both disappointed dramatically highlighting a further slowdown. At 13:30 we had the release of CAD unemployment, expected 7.2% actual 7.3% rate and net change in employment expected 10k actual -2.3k , reasonably poor results although CAD seems doesn’t seem to have suffered too badly from the outcome.