GBP

As expected from the UK, interest rates were held at 0.5%, with the MPC
voting unanimously to keep interest rates at record lows. However, the minutes
released did reveal that policy members are disagreeing over the likely
direction of inflation.

GBP

As expected from the UK, interest rates were held at 0.5%, with the MPC
voting unanimously to keep interest rates at record lows. However, the minutes
released did reveal that policy members are disagreeing over the likely
direction of inflation.

The UK government has hit
its target for deficit reduction for the last financial year, as the British
deficit fell to its lowest level since the financial crisis. The Office for
National Statistics reports that public sector net borrowing in 2013-14 came in
at £107.7bn, or 6.6% of GDP. This is £7.5bn lower than the same period in
2012/13, when it was £115.1bn.

EUR

Early morning saw the release of key economic indicators for the
Eurozone which came in better than was forecast. Markit Manufacturing PMI came
in at 53.3, up from 53, Markit Services PMI came in at 53.1 up from 52.2 and
the Markit PMI Composite came in at 54 from 53.1. This is very good data from
the Eurozone and shows strong growth for the two economic indicators that have
a strong bearing on GDP growth.

Not surprisingly we did see the euro gain some ground on the release of
this data.

USD

Data from the US was disappointing yesterday. Markit Manufacturing was
down marginally from 55.5 to 55.4. This reduction is still being blamed on the
poor winter weather conditions. Also new home sales showed a decline in March,
coming in down at 384,000 from 449,000 a month earlier.

Today

Quiet in terms of data out from the UK and Eurozone today. Mario Draghi
is speaking today at 11am.

In the USA today, data is again expected to disappoint. Durable goods
orders are expected to fall, initial jobless claims expected to rise and
continuing jobless claims expected to increase.

Key
Announcements:

11:00am – EUR – ECB President Draghi Speech.

13.30pm – USD – Durable Goods Orders (Mar): Expected to fall to 2%.

13.30pm – USD – Initial Jobless Claims: Expected to rise to 310,000.