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Weekly Market Report 26/03

GBP

The Pound had one of its most positive weeks in a long time last week as it climbed into the 1.15’s against the Euro for the second time this year, the highest it has been since June 2017. The UK and the EU reached an agreement on a transition period for Brexit lasting from 30th March 2019 until the end of 2020.

We also saw the Bank of England Monetary Policy committee voted 7-2 to keep the current interest rates the same. The market is now slightly more confident that the Bank of England will hike the rates in May.

EUR

The Euro had a volatile week last week although the lingering threat of a global trade war now looks a little more limited, the Euro has become a little more appealing. Worries over the outlook of the US economy  mounted, encouraging investors to sell. This all caused the Euro to recover some of its lost ground towards the end of the week.

The lack of UK data coming out this week may help the EUR gain against GBP. Confidence in the Euro may strengthen even more on the back of the latest German consumer price index report.

 

USD

Last week the US Federal Bank raised interest rates from 1.5% to 1.75% which was widely expected and priced in. Although the accompanying policy statement suggested that FED would only target two additional rate hikes later in the year apposed to the four some investors were hopeful for. A positive figure from the US Gross Domestic Product figures released this Thursday could cause Dollar strength.

 

KEY DATA

Mon – USD – FED’s William Dudley speech

Wed – USD – Gross Domestic Product Annualised

Thur – EUR- GER – Harmonised Index of Consumer Price

Fri – Good Friday

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