Following yesterday’s weak economic calendar, today brings the release of the Eurozone’s Purchase Manager Index.
It is widely expected that Europe’s PMI will come in at 48.9, which is a healthy increase from last months 47.9. While this is still below the 50 growth mark, this shows some positive movement.
The US dominates the market today with high level data being released this afternoon. One of the key releases is the ISM Non-Manufacturing Survey – Employment Index, this is forecasted to come in at 50.5.
Following this the US will also release their PMI, markets are expecting this to fall to 53 (from 53.4) albeit this is still above the 50 point growth mark.
Attention then shifts to the UK with the release of the Spring Budget, this is set to commence at around 12:30 on Wednesday. The Chancellor of Exchequer will outline his fiscal plans for the next financial year.
Later this week the European Central Bank releases their Interest Rate Announcement on Thursday. This is the interest rate on the main refinancing operations that provide most of the liquidity to the banking system. This is expected to stay the same at 4.5% for the fourth consecutive month.
On the currency front, the pound made strong ground on the dollar yesterday evening with a rise of 40 basis points.
As for the pound to euro rate, the pound is currently sitting close to this years highs.