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Market Comment - 29th March 2021

Posted by Stuart PritchardMarch 29, 2021

Good afternoon,

GBP:

Sterling has opened up positively on the day that the lockdown restrictions in England are eased, from this morning two households or groups of up to six people are able to meet outside.

Outdoor sports facilities like golf courses and tennis courts can reopen, along with organised outdoor sports. Weddings attended by groups of up to six people can also resume.

Hands, Face, Space and Fresh Air - a new slogan is also being unveiled which the government hope will reiterate the message regarding the importance of ventilation to help with reducing the spread of  the Covid-19 virus.

After a raft of UK data last week, this week is looking very light with only two significant data releases being noteworthy. We'll see the third reading of Q4 GDP on Wednesday along with the UK Nationwide House Prices for March released on the same day as the focus will be on the daily virus figures as lockdown is eased.

EUR:

Further lockdowns across the Eurozone has put the single currency under pressure at the start of trading today, to stem the tide the EU will need to hold firm on it's assurances to increase the pace of it's Covid-19 vaccination programme throughout the second quarter of this year.

A continued sluggish economic recovery from the pandemic could have wider reaching implications for the European Community.

We will see inflation numbers for March released on Wednesday 31st March in the main highlight within the economic calendar this week.

USD:

The Dollar performed well last week after strong gains following the announcement of the presidents enormous fiscal stimulation package sent growth upgrades for 2021 and 2022 soaring. 

Bidens "rescue package" has meant interest rate expectations in the US have firmed and long terms bond yields have increased sharply.

Having been oversold in second half of last year, the firming of the worlds most actively traded currency could see exaggerated gains, especially if the rapid roll out of the vaccination project continues.

This week the main event in the US market calendar is the US labour report which is due on Good Friday, with the market consensus expecting the upward trend to continue. 

Todays economic calendar 

UK: 09:30 Consumer Credit (February)
UK: 09:30 Mortgage Approvals (February) 
EU-19: 10:00 Business Climate (March) 
IRL: 11:00 Retail Sales (February)

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