The UK took a giant step closer to exiting the Eurozone yesterday as the UK Parliament passed legislation allowing Prime Minister Theresa May to invoke Article 50. Economists’ now expect May to trigger the clause by the end of the month. The Pound has remained relatively resilient this week after Parliament’s decision and Nicola Sturgeon’s second Scottish independence referendum promises.
Across the pond, the US released a key piece of high tier data yesterday afternoon. US PPI, a key indicator of inflation in the States exceeded expectations yesterday, posting 0.3%. The Producer Price Index which is the leading indicator of consumer inflation, boosted the Dollar after the bullish release, as prices continue to rise in the world’s largest economy.
Wednesday sees a raft of data being released. Insight into UK employment will be given in the morning with the release of the Claimant count, Average Earnings and Unemployment rate figures hitting the wires at the same time. No big change is expected to be seen, as the Unemployment rate is to stay at 4.8%. Shortly after lunch, the US are to post their Inflation figure which is anticipated to show an increase on the yearly gauge to 2.7%. However, the main focus will be on the Federal Reserve meeting in the evening, where markets are expecting the first rise to be actioned by the FOMC members this year.