Daily Update - 15th March 2017
Yesterday’s Market Yesterday Explained Industrial Production in the EU rose by less than expected in January, while EU sentiment saw a largest improvement up to 25.6 from previous 17.1. In the US, however, things were a bit better, as the Producer Price Index for final demand increased 0.3% in February, while on an unadjusted basis, it rose by 2.2% in the 12 months to February, the largest advance in almost five years. Market were focused on whatever the FED will offer this Wednesday, as the US Central Bank is largely expected to announce a 25bps rate hike. Sterling fell sharply yesterday following yesterday’s developments as the Scottish referendum adds a new layer of uncertainty for the UK’s future path. GBP/AED dropped to an 8-week low of 4.447. The Scottish National Party’s decision to call a second referendum on Scottish independence from the UK on the same day as the Article 50 bill passed through Parliament, was seen as a deliberate move to derail the government’s Brexit plans. Prime Minister, Theresa May was expected to trigger Article 50 within 24 hours of the bill through parliament. The Brexit bill had a relatively easy ride as the House of Lords backed down in its attempt to attach two amendments to the government’s bill after MPs voted down both amendments. Today’s Market Today’s Focus Today is an intense day in terms of Market activity as we will be flooded high tier reports during the latter half of the day. Retail Sales will be coming out from US where they measure the total receipts received obtained by the retails stores from all sectors that as a public presence in the US by the US Census Bureau. This is done to analyze the consumers spending patterns and conclude whether the economy is growing or not. Next up, we have consumer price index which is the comparison between the retail prices of a representative shopping basket of goods and services. The main event for the day is the FEDs Interest rate decision which will take place during the evening. The decision to hike up interest rates by 25bps is cemented due to the positive turnout of the job data reports which was held during the weekend. The decision was finalized when the Employment and Inflation reports were favorable. More than 200,000+ jobs have been created and inflations is low as 4.7%.
