USD

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.

GBP

USD

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.

GBP

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

INR

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.

Today

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.

Key Announcements:

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%.