There was some significant data released in the UK yesterday with economic growth accelerating to the fastest pace in a year, due in part to a pickup in services and government spending. In addition, UK Mortgage Approvals fell to a 3 month low in February with lenders approving 115,000 home loans compared with 121,000 in January, the first decline in 15 months and that is coupled with a rise in UK house prices in the month of March. Sterling also suffered after Britain’s current account deficit remained unexpectedly large after forecasters predicted a sharp narrowing to £6.9 Billion in the fourth quarter of last year, while the actual figure stands at £10.95 Billion, raising concerns that the economy is still unbalanced and may not accelerate as fast as previously predicted.
As a result, Sterling fell dramatically against the Euro, which is being boosted following positive Business Confidence data in Germany, fuelling speculation that the ECB will continue to raise interest rates in the coming months. There is also some significant data in Germany this morning with unemployment figures expected to be unchanged in March.
The dollar is still reaping the rewards of a 15th consecutive hike in interest rates and with some significant data released this afternoon in the States, we could see some further market movement today. GDP is expected to show that the U.S economy expanded to an annual rate of 1.7% in the fourth quarter.
Data Released 30th March
U.S 14:30 GDP (Q4 final)
U.S 14:30 Initial Jobless Claims (w/e 25th March)
written by Adam Solomon
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