EUR

Eurozone business activity expanded at a slightly slower
pace in March when compared to February. Both the services and manufacturing
sectors expanded at 52.4 and 53 against an expected 52.6 and 53.2.

A similar story happened with the data from Germany but
France surprised markets with both sectors returning to growth.

Whilst the euro weakened off in early European trade, the
single-bloc currency managed to recover and claw back its losses and finished
stronger on the day.

EUR

Eurozone business activity expanded at a slightly slower
pace in March when compared to February. Both the services and manufacturing
sectors expanded at 52.4 and 53 against an expected 52.6 and 53.2.

A similar story happened with the data from Germany but
France surprised markets with both sectors returning to growth.

Whilst the euro weakened off in early European trade, the
single-bloc currency managed to recover and claw back its losses and finished
stronger on the day.

USD

PMI manufacturing output came in weaker than expected for
March to 55.5 from 57.1 in February, although the output is the second highest
since January 2013.

The data adds to evidence that the sector has managed to
shrug off the grim weather the country experienced over the last few months and
may well contribute heavily to GDP in the first quarter.

Whilst the US dollar experienced some very choppy trading,
the overall move was fairly directionless with the US dollar finishing unchanged
from the opening of European trading hours to the close.

INR

The Indian rupee continued to strengthen yesterday following
improved sentiment over the Indian economy. The Nifty stock market climbed by
1.3% yesterday to a lifetime high of 6,580.90. The rise in the stock market has
been attributed to foreign investors, who have needed to buy the rupees for
stock purchases.

Risks to inflation, high borrowing rates and a weak
industrial sector still pose a challenge for the next government but
nonetheless the improving nature of the economy is improving demand for the
rupee.

Today

UK inflation is forecasted to drop from 1.9% to 1.7% this
morning which could well put pressure on the pound given the link between the
movements on the rate of inflation and rate of interest.

The euro continued to be resilient before a report today
that is set to reveal that business confidence in Germany held near a 2 ½ year
high. ECB president is also set to speak in Paris this afternoon.

Key Announcements:

9.00am – EUR – IFO German Business Climate (Mar): Expected
to drop slightly to 111.0.

9.30am – GBP – Consumer Price Index (Feb): Set to fall to
1.7%.

14.00pm – USD – Consumer Confidence (Mar): Set to increase
to 78.6.

14.00pm – USD – New Home Sales (Feb): Set to fall to 445,000