Today's news headlines:
'China set to overhaul financial system giving Xi more control'. Control is the name of the game, and it looks like China President Xi Jinping is about to gain a greater influence over the decision-making process at the People's Bank of China. He Lifeng, a close ally to Xi, is expected to take over the reins of economic policy in government next month while also being in contention for Party Secretary at the PBOC. Markets see this as giving Xi more localised control over the central bank and, as a consequence, the direction of a $60 trillion financial sector. (Bloomberg)
'UK consumer confidence has sharpest rebound in almost two years'. Optimism is on the rise in the UK as inflation begins to abate and energy costs fall. Outlooks for the next twelve months appear less bleak, with many expecting an improvement in personal finances for the year ahead. However, many are still attempting to cut costs where they can, indicating there is a long way to go in the cost of living crisis. (Bloomberg)
European shares tick higher on the final trading day of the week after a mixed session in Asia; US equity futures point lower ahead of PCE data later today. The US Dollar is little changed this morning, with the DXY Index trading above 104.60 while Sovereign bond yields come lower across the curve.
UK GfK Consumer Confidence (Feb): -38 (est. -43)
Germany GfK Consumer Climate (Mar): -30.5 (est. -30.6)
US Core PCE Price Index MoM (Jan): 1:30PM
US New Home Sales (Jan): 3:00PM
US Revised UoM Consumer Sentiment (Feb): 3:00PM
US FOMC Member Philip Jefferson speaks: 3:15PM
UK MPC Member Silvana Tenreyro speaks: 4:30PM
GBP/USD – 1.2006
GBP/EUR – 1.1346
EUR/USD – 1.0581
USD/CAD – 1.3568
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.