The Pound took a downturn versus the Euro overnight. After what appeared to be a break out (finally), the Sterling rate has retreated back to the top of the previous range. Today could be very telling for the direction of the next leg. Whilst the rate may climb again there is also a very real chance that it may drop back into the well formed mid term range.
Eurozone GDP data out later this morning could prove the deciding factor.
Global stock markets continue to be under fire as investors decide on a risk off approach around the Ukraine situation. Talk of oil being used as a sanction pawn isn't helping although appears to be a strong bargaining chip versus Russia. However with countries like Germany being almost solely reliant on Russian oil and gas it's difficult to see the West turning off the taps.
All of this turmoil will be having a knock on effect to inflation. The UK publishes it's reading next Thursday although that will be the data for February. It will be Aprils numbers that show the true outfall of the Ukraine crisis.
Today sees both the Eurozone GDP numbers and later there's the Japanese GDP data. However this is likely to be overshadowed by the Chinese inflation numbers out in the early hours.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 GDP Data
JPN: 23:30 GDP Data
CHN: Wednesday 01:30 Inflation Data