Daily Market Report - 01/03/2016


Yesterday we saw the GBP strengthen against all major currencies. British mortgage approvals hit a two-year high in January and consumer credit expanded at the fastest pace in a decade. Mortgage approvals for house purchases numbered 74,581 in January from 71,335 in December.These strong figures are likely to add a case for a tightening of lending requirements by the central bank to prevent a the housing market from overheating further.
Consumer credit also grew by 9.1 percent year-on-year in January, picking up speed from December to hit its fastest pace since January 2006. Britain's economic recovery is still heavily reliant on spending by households many of which have been buoyed by strong growth in the value of their homes.


Yesterday inflation eurozone turned negative in February boosting expectations that the European Central Bank will unveil another stimulus package at its next policy meeting on March 10. Statistics agency Eurostat said consumer prices across the region were down 0.2 percent in February from the year before, against a 0.3 percent rise the previous month. The decline was way more than anticipated the consensus in the markets was for a drop to zero.
The decline is largely due to a big decrease in energy costs, which were 8 percent lower in the year to February against the previous month's 5.4 percent drop

Key Announcements

10:00 – EUR: Eurozone Unemployment Rate expected to remain unchanged at 10.4%
15:00 – USD: ISM Manufacturing PMI (Feb) expected to rise to 48.5 from 48.2