The Euro traded down on the Dollar yesterday as a result of a combination of end of month flows and the final US GDP figure coming in at 2.9%, a significant upward revision of the original reading. Growth projections for the US have been lifted on the back of a planned increase in government spending and a package of $1.5 trillion in cuts to income taxes, giving the Dollar further support.
With the UK set to leave the European Union one year today, UK Prime Minister, Theresa May will be visiting parts of England, Wales, Scotland and Northern Ireland in an attempt to unite the country, bringing the leavers and remainers together. However, there is still a lot to be negotiated before the UK leaves the bloc in a year’s time. Negotiations will continue until October, when it is hoped a final deal will have been created.
Today the Eurozone will be releasing the Prelim CPI figure from their biggest economy, Germany. The month on month reading of this figure is expected to remain static at 0.5%. Back in the UK, the Current Account figure for Q4 of 2017 will be released. The Current Account figure looks at the difference between imported and exported goods, services, income flows and unilateral transfers between one quarter and the next. This release is expected to decline to -23.7b. The final GDP figure for the UK is also scheduled to be released at 0.4%.