Currency movement yesterday saw the Pound continue to hold the better stance gained last week. Of course, the Brexit referendum is still hanging over the market, although this may be some time in June. This is likely to bear down on the currency further in the coming weeks. The economic docket was relatively light and the main focus continues to be the ECB Press conference this Thursday and the US election.
The ECB meet this week in a gathering widely expected to result in further stimulus measures. The question on economists’ lips is how much stimulus will be added and in what form? Action is widely expected after December’s less than forecast measures stunned the market. The US election has also kept markets entertained. Hilary Clinton said the American auto industry would have collapsed if Sanders had succeeded in blocking its rescue as the Democratic race heats up.
Early hours of this morning will see the Trade Balance released from the world’s second largest economy, China. As the slowdown of China has rippled through the rest of the world’s economy and concerns remain on a further demand from China, this data will give further insight into their demand and will be scrutinized by the markets. In the afternoon, Bank of England Governor Mark Carney is scheduled to speak about the UK’s membership within the EU, Carney’s comments will no doubt be heavily scrutinized. Also released today is the Eurozone’s revised GDP figure for Q4, which is currently at 0.3%.