In terms of economic data yesterday it was only really the US in the spotlight. Firstly, we had Durable goods orders which came in at 2.2%, far above the forecast of 1% growth for February. Next up was services PMI which also came in above expectations at 55.5. Data from the US seems to be picking from the previous month which was effected by the poor weather.
Very quiet in terms of economic data from the UK, however GBP did gain some ground yesterday on the back of comments made by Martin Weale (member of MPC). He states that the economy was looking 'considerably better' and that when rates rise they will do gradually. He continued to comment that the recent reduction in inflation is good for the economy after such a long period of time above target inflation. This also provides an opportunity to see wage growth outstrip inflation for the first time in a long time
The Rupee climbed to an eight-month high amid speculation a new government will be elected that will be capable of reviving economic growth. So far global funds have pumped $3.6 billion into Indian stocks and debt this month so sentiment is changing and investors are more confident in the Indian economy.
This morning from the UK, retail sales figures came in higher than expected rising to 3.7%. As a result the pound has jumped up significantly.
There is also quite a lot of focus on USA this afternoon. First up is GDP growth which is expected to come in slightly lower at 1.6% from 2% previously.
Initial jobless claims are also expected to come in worse, rising to 325k to 320k, however continuing jobless claims is expected to fall from 2.889mln to 2.878mln.
12.30pm – USD – GDP (Q4): Expected to drop to 1.6%.
12.30pm – USD – Initial Jobless Claims: Expected to rise to 325,000
14.00pm – USD – Pending Home Sales: Expected to drop to 0%.