The referendum on the UK’s membership in the European Union, is just under three months away and markets are becoming slightly more concerned over the dangers the vote poses. London Mayor, Boris Johnson insisted that the finance industry would “flourish mightily” outside the EU sparking a sell off of the Pound earlier this month. Terrorist attacks in Belgium this week then added a strong argument for the “leave” campaign, again sinking the Pound.
The economic docket was relatively light yesterday. However, we did have two pieces high tier data released from the States, in the form of New Home Sales and Crude Oil Inventories. New Home Sales continued to rise above that key 500k mark, exceeding expectations and posting a healthy 512k. Crude Oil inventories also increased, registering a reading of 9.4M, a three month high.
Another busy day expected before the UK Easter weekend, as the monthly Retail Sales figures are released in the UK, anything above last month’s 2.3% would see support for the Pound. In the afternoon, the US releases the Core Durable goods figure. This was closely watched by the markets for signs of further positives, which could point towards the Fed raising rates sooner than expected.