Whilst there was a lack of economic data released yesterday the GBP made gains against all of its major counterparts. Ongoing uncertainty regarding the Eurozone has left analysts with a lack of confidence in the Eurozone causing a sell off and further investment in the Pound, this we believe has been the major reason for the rise of Sterling today.
In a report by the Financial Times, 437 Business leaders were surveyed throughout 32 countries, 76% said a British exit would damage the performance of the U.K economy. Close ties between the U.K and the rest of the Eurozone risk being damaged; with the exit of the U.K from the Eurozone damaging future trade balance (trade balance is importing and exporting).
Also in the headlines, the latest UK general election poll by Populas puts conservative and Labour both tied at 33%. This once again outlines the uncertainty regarding the result of the U.K election and which policies the country will adapt over the next term.
The Dollar had a mixed day yesterday after an extremely negative trade balance was released from China, showing exports fell by 14.6%. With the consensus being a drop of 45.35 billion dollars, this has caused a lack of confidence in China leaving analysts investing their money in the Dollar’s safe haven status. The U.S had 3 month and 6 month Bond auctions yesterday which were relatively successful, with yields rising on average 0.01%.
There were rumours in Greece that an early election was going to occur however this was quickly abolished by the Greek Government yesterday who also announced that Athens are looking for an agreement with Creditors. Whilst there were rumours yesterday of failed Italian Bond Auctions, Italy sold 7.5 Billion Euro’s worth of 3 year, 7 year and 15 year bonds. It was reported that technical talks between Greece and its lenders were expected to commence yesterday, in order to prepare for a finance ministers meeting on 24th April.
GBP: 9:30 - Core Consumer Price index (Year on year)
USD: 12:30 - U.S Retail Sales (MoM March) expected to rise to 1.1% from -0.6%
EUR: 9:00 – Industrial Production w.d.a (YoY) (Feb) expected to fall to 0.7% from 1.2%
Our dealers are available via e-mail (email@example.com) or by phone (020 7220 8181).