UK Public Sector Net Borrowing came in way off expectations. Analysts had expected £7.7 billion to be borrowed, but the actual figure was more like £16.7 billion. This caused an immediate drop in the Pound versus the Euro. However the drop wasn't huge.
Today sees a continuance of speeches from the ECB President, Christine Lagarde, along with Canadian inflation numbers. Analysts are expecting year on year growth of 4.6% which would be a better number than the previous months of 5%.
However the big news is tomorrow at breakfast. The UK's inflation numbers. Economists are expecting a softening of the inflation number to 9.8% annually down from the 10.1% released in February. The retail price index is also out which is often used to peg pension growth. Analysts are expecting 13.2% year on year growth down for the previous 13.4%. This will be a very closely watched set of numbers for anyone trading in or out of the Pound.
The UK inflation numbers could well have some bearing on the Bank of England interest rate decision out on Thursday where the expectation is for another 25 basis point hike (0.25%).
Business news continues to reflect on the global banking situation alongside the positive for Sri Lanka where an IMF bailout has been granted of $3 billion.
Today’s Economic Calendar
EUR: 12:30 ECB's President Speech
CAN: 12:30 Inflation Numbers
UK: Wednesday 07:00 Inflation numbers
As ever we look forward to keeping you in the loop and look out for our next update.
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