Pound News: GBP Rises Ahead of Chancellor Sunak’s 2021 Budget Announcement
The Pound rose today ahead of today’s UK 2021 Budget announcement from Chancellor Rishi Sunak at 12:30pm. Already news that the furlough scheme is set to be extended until September has helped boost the UK market mood.
However, David Madden an analyst at CMC Markets, commented that the economy still needs ‘massive fiscal support’ despite the massive UK vaccination programme.
More government spending, however, could further bolster Sterling today as the outlook for the UK’s economy continues to improve.
Looking ahead to tomorrow, UK traders will be awaiting February’s UK Markit Construction PMI, which is expected to emerge from contraction territory. As a result, we could see the GBP exchange rate head higher as the outlook for the nation’s construction sector improves.
Euro News: EUR Struggles as Eurozone ‘On Course for a Double-Dip Recession’
The Euro struggled this morning following the release of the latest Eurozone Markit PMI Composite for February, which remained in contraction territory at 48.8.
Christ Williamson, the Chief Business Economist at the IHS, said that the ‘fourth successive monthly drop in business activity puts the Eurozone economy on course for a double-dip recession’.
Now that Germany has extended its lockdown restrictions until late March, however, EUR investors are becoming more downbeat about the outlook for the Eurozone’s powerhouse economy.
Tomorrow will see the release of the Eurozone’s final retail sales data for January, which is expected to fall by -1.2%. Consequently, we could see the single currency continue to fall against many of its peers.
US Dollar News: USD Struggles as Risk Sentiment Improves
The US Dollar has struggled this week because of growing optimism for US President Joe Biden’s enormous $1.9 trillion Covid-19 stimulus plan.
USD investors are awaiting today’s publication of February’s ADP Employment Change data. Any improvement in US jobs could provide some uplift for the US Dollar.
Today will also see the release of the latest ISM Services PMI for February. If this points to an improvement in the nation’s services sector, then we could see US market optimism improve.
Tomorrow will see US Fed Chairman Jerome Powell Deliver a speech. If he is bullish about the outlook for the American economy, then the USD could suffer as risk sentiment improves.
Canadian Dollar News: CAD Weakens on Underwhelming Canadian GDP Data
The Canadian Dollar continued to struggle today despite stronger-than-expected GDP data for the fourth quarter.
Instead, a worrying decline in December’s GDP reading concerned CAD investors.
Canada’s economic growth has also been stunted by the Covid-19 pandemic, leaving many CAD investors cautious about the economy going forward.
Australian Dollar News: AUD Rises on Strong GDP Data in the Fourth Quarter
The Australian Dollar rose today following the publication of the fourth quarter’s Australian GDP figure, which beat forecasts and rose by 3.1% quarterly.
Added to this, improving risk sentiment has driven demand for the risk-sensitive ‘Aussie’.
12:30 UK Budget Report
13:15 US ADP Employment Change (Feb)
15:00 US ISM Services PMI (Feb)
15:00 EU ECB De Guindos Speech