Today's news headlines:

‘Hunt says UK to avoid recession, halve inflation this year’. Optimism on the prospects for the UK economy has certainly seen some uplift following yesterday’s Budget. UK GDP is only expected to contract by 0.2% this year versus a prior forecast of a 1.4% decline, according to the Office for Budget Responsibility. Price pressures are also expected to abate in the second half of the year as current projections point to a 2.9% inflation rate by the end of Q4 23. At the same time, the Energy Price Guarantee will be extended until July, freezing the cap on bills at £2,500 per year. (Bloomberg) 

‘Credit Suisse taps $54 billion in central bank crisis aid’. Credit Suisse shares have surged in early trading this morning thanks to $54bn of support from the Swiss National Bank as the second-largest lender in Switzerland seeks to restore some investor confidence. According to reports by inside investors, this will be the final time the bank seeks out extra capital. Credit Suisse is no stranger to difficult times following years of scandals, legal issues, and inconsistent management, which culminated in a CHF 7.3bn loss last year. (Bloomberg) 

Today

European markets and US equity futures have rallied this morning following a cash injection at Credit Suisse from the SNB. Sovereign bond yields in the US and Europe move higher ahead of the European Central Bank meeting today. The US Dollar is softer in early trade as traders price in 1% of rate cuts by the Federal Reserve by the end of the year.  

Events

Australia Unemployment Rate (Feb): 3.5% (est. 3.6%) 
Japan Revised Industrial Production MoM (Jan): -5.3% (est. -4.6%) 
US Unemployment Claims (Mar 11th): 12:30PM
US Philly Fed Manufacturing Index (Mar): 12:30PM
European Central Bank Monetary Policy Statement: 1:15PM

Interbank rates*:

GBP/USD – 1.2093
GBP/EUR – 1.1387
EUR/USD – 1.0621
USD/CAD – 1.3734

Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.