Yesterday

 

• The German IFO Business Climate index rose unexpectedly in March following 6 months of consecutive declines. The survey reading of 99.6 was comfortably higher than the 98.7 forecast as the German economy is showing resilience according to the Ifo President.
• Sterling was under pressure for much of the morning session following those reports over the weekend that Mrs May was under increasing pressure from her own party to resign. However by the close of play, and following a brief rally around midday, Sterling closed the day pretty much where it had started it against the US Dollar and Euro.
• Addressing the commons yesterday afternoon, UK PM Theresa May told MP’s she would not be putting her Brexit deal forward for a third time just yet as there is still insufficient support. However the PM added she would continue to work with lawmakers in order to build the support she requires to bring the deal forward this week.
• Whilst they have been consistent in their stance, the DUP still show no signs of coming around to Mrs May’ deal. BBC Political Editor Laura Kuenssberg tweeted yesterday that following a call between Theresa May and Arlene Foster, the DUP once again said they would not be shifting their position.
• According to the IMF the US-China trade war poses the ‘largest risk’ to global stability.
• There have been calls from officials in Germany for the EU to veto Italy’s proposed participation in China’s giant ‘Silk Road’ infrastructure project. There is concern such involvement could provide too much sway to China with German Foreign Minister Heiko Mass stressing China is not a liberal democracy and that Europe urgently needs a China strategy that lives up to its name.

Overnight

 

• UK Parliament witnessed yet another first yesterday evening as MP’s voted to take control of commons business. In an unprecedented move, MP’s voted 329 to 302 on a cross-party amendment which will now allow MP’s a series of votes this Wednesday on what kind of Brexit has the most support (E.g. Softer Brexit with Customs Union, Norway plus, another referendum etc). 30 Tory MP’s voted rebelled against the Government, including 3 ministers who resigned in order to do so. Mrs May has however said there is no guarantee she will abide by any outcome of Wednesday’s votes.
• The Pound did push higher in FX space following the news on the above vote however those moves were fairly limited.
• New Zealand Trade Balance 12M (-200M Exp)
• Japan Services PPI y/y 1.1% (1.2% Exp)
• German Gfk Consumer Climate 10.4 (10.8 Exp)

• Couple of central bankers due to speak this morning including the US Fed’s Evans and Bank of England’s Broadbent.
• US Consumer Confidence is the key print this afternoon due at 2pm.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair	Interbank Rate	% Change on Day
GBP/EUR	1.1661	+0.04
GBP/USD	1.3183	-0.08
EUR/USD	1.1306	-0.05
AUD/USD	0.7125	+0.18

 

Time (GMT)	Region	Data Release	Forecast	Previous
09.30	GBP	High Street Lending	39.4K	40.6K
10.30	USD	Fed Member Evans Speaks
11.00	GBP	BOE Broadbent Speaks
12.30	USD	Building Permits	1.32M	1.32M
12.30	USD	Housing Starts	1.22M	1.23M
14.00	USD	CB Consumer Confidence	132.1	131.4
14.00	USD	Richmond Manufacturing Index	12	16

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