It’s a Busy Day Ahead for the Pound, with Economic Data and the Budget in Focus

Earlier in the Day:

It was a relatively busy day on the Asian economic calendar this morning. The Kiwi Dollar and Aussie Dollar were in action through the early part of the day.

For the Kiwi Dollar

Electronic card retail sales rose by 0.6% in February, reversing a revised 0.2% decline in January. Economists had forecast a 0.3% rise.

According to NZ Stats,

• Spending on groceries and long-lasting goods including furniture, hardware, and appliances delivered the upside.
• Sales of grocery food and drink jumped by 2.4%, with durables (furniture, hardware, and appliances) rising by 0.8%.
• Eating and drinking at places such as cafes, restaurants, and bars fell by 0.8%.

The Kiwi Dollar moved from $0.62668 to $0.62625 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.27% to $0.6287.

For the Aussie Dollar

The Westpac Consumer Sentiment Index fell by 3.8% to a 5-year low 91.9 in March. In February, the Index had jumped by 2.3% to 95.5. Economists had forecast a 0.40% decline

According to the latest Westpac Report,

• Economic conditions next 12 months weighed heavily, with the sub-index sliding by 12.8%.
• There were also declines in the economic conditions next 5-years (-1.3%), time to buy a major household item (-4.3%) and family finances next 12-months (-1.7%).
• From the housing sector, while the time to buy a dwelling index slipped by 0.3%, the House Price Expectations Index slid by 6.6%.
• Sentiment towards the labor market also deteriorated, with the Unemployment Expectations Index rising by 8.5%.

Negative sentiment towards the spread of the coronavirus and impact on the financial markets weighed heavily in the month.

The Aussie Dollar moved from $0.65005 to $0.64904 upon release of the report. At the time of writing, the Aussie Dollar was up by 0.14% to $0.6514.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.80% to ¥104.79 against the U.S Dollar.

The Day Ahead:

For the EUR

It’s a quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to influence the EUR.

A lack of stats will leave the markets to consider tomorrow’s ECB monetary policy decision and member state fiscal stimulus plans.

Any risk aversion over the course of the day would be considered EUR positive.

At the time of writing, the EUR was up by 0.42% at $1.1328, with the early gains coming from a pullback in the Dollar.

For the Pound

It’s a particularly busy day ahead on the economic calendar. Key stats include January GDP and industrial and manufacturing production figures. January’s trade data that are also due out will likely have a muted impact, however.

Outside of the numbers, the government will also announce its budget, with the markets expecting a loosening of the purse strings.

Today’s stats and the budget are key for the Pound as the BoE remains poised to deliver support.

At the time of writing, the Pound was up by 0.06% to $1.2919, with the Dollar weakness providing early support.

Across the Pond

It’s a relatively busy day ahead on the economic calendar, with February inflation figures due out later today.

With the markets expecting a 2^nd rate cut by the FED later this month, expect the Dollar to be more sensitive to softer numbers. Forecasts are for the core annual rate of inflation to hold steady at 2.3%.

Outside of the numbers, the markets will be looking for the U.S administration to make progress on delivering relief to consumers.

The Dollar Spot Index was down by 0.29% to 96.133 at the time of writing.

For the Loonie

It’s another quiet day ahead on the economic calendar, with no material stats due out of Canada to provide the Loonie with direction.

The lack of stats will continue to leave the Loonie in the hands of crude oil prices on the day.

The Loonie was up by 0.23% at C$1.3695 against the U.S Dollar, at the time of writing, with an early pickup in crude oil prices providing support.