EUR
German investor confidence rose less than economists predicted in March as
uncertainty over Greece’s future in the euro area countered optimism over an
improving economic outlook. The ZEW Center for European Economic Research
said its index of investor and analyst expectations climbed to 54.8 from 53 in
February. While that’s the highest since February 2014 and the fifth month of
increases, it fell short of the 59.4 median forecast.

EUR
German investor confidence rose less than economists predicted in March as
uncertainty over Greece’s future in the euro area countered optimism over an
improving economic outlook. The ZEW Center for European Economic Research
said its index of investor and analyst expectations climbed to 54.8 from 53 in
February. While that’s the highest since February 2014 and the fifth month of
increases, it fell short of the 59.4 median forecast.

Concerns about the outcome of Greece’s negotiations with its European Union
creditors is weighing on sentiment as the stand off threatens to worsen the
country’s financial crisis. Even so, German economic growth remains supported
by lower oil prices and a weaker euro, just as the European Central Bank’s
quantitative-easing program pushes down bond yields and boosts stocks.

ZEW President Clemens Fuest stated that Economic sentiment in Germany remains
at a high level. However there is limited progress being made with regard to
solving the Ukraine conflict and the sovereign debt crisis in Greece and this
has a dampening effect on sentiment.The ZEW’s Indicator of Economic Sentiment
for the Eurozone has also increased by 9.7 points to a reading of 62.4
points. 

USD
Housing starts slumped in February by the most in four years as bad winter
weather in parts of the U.S. prevented builders from initiating new
projects.Work began on 897,000 houses at an annualized rate, down 17 percent
from January and the fewest in a year. While stronger hiring and low borrowing
costs have helped the industry advance, sales remain challenged by limited
supply of cheaper homes and sluggish wage growth.

Cheap borrowing costs are keeping homes affordable for some Americans. The
average 30-year, fixed-rate mortgage was 3.86 percent in the week ended March
12, according to data from Freddie Mac in McLean, Virginia. That’s below the
average 4.26 percent rate since the expansion began in June 2009.

Greater employment opportunities are providing support for the housing industry
as well. The economy added 295,000 workers last month, more than forecast, and
the unemployment rate dropped to 5.5 percent, the lowest in almost seven years.
At the same time, weaker income expectations are weighing on consumer
confidence, which declined in March to a four-month low.

Key Announcements
GBP – 9:30:Average Earnings Index (Feb)  Expected to rise from 2.1%
to 2.2%
GBP – 9:30: Unemployment Claimant Count Change (Feb) Expected to rise
from -38.6k to -30.6k
GBP – 9:30: MPC Official Bank Rate Votes expected to be 9-0 to remain unchanged
GBP – 12:30: UK Annual Budget Release
USD – 18:00: US Federal Reserve Monetary policy Statement and press
conference
USD – 18:00: US Federal Reserve interest rate decision expected to remain
at 0.25%

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