It was budget day in the UK yesterday as Chancellor of the Exchequer, Philip Hammond presented his 2017 budget in the House of Commons. Hammond said the Spring Budget provides a “strong, stable platform for Brexit”. Hammond also added an extra £2bn for adult social care and revised economic growth higher for 2017 to 2%. Labour suggested that the budget was “utter complacency” after Hammond’s announcement.
Across the pond, the US released their ADP Non-Farm employment change yesterday afternoon. The figure was extremely bullish, posting at 298k, its highest reading since January 2012. The better than expected ADP has sparked rumours that this Friday’s all important Non-Farm pay roll will exceed economists’ consensus and boost the Greenback Friday afternoon.
The European Central Bank rate decision and press conference will come into focus today. Inflation for the Eurozone is now rising faster than forecasted by the ECB and markets are now expecting some form of action to be taken to combat this. The Head of the ECB, Mario Draghi will speak after the rate decision and his comments on whether there will or will not be a move, could see volatility for the Euro.