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Blanks to fill in as Trump’s talk short on specifics

Blanks to fill in as Trump’s talk short on specifics

New Deputy Bank of England Governor, Charlotte Hogg’s first testimony to the Treasury Select Committee dealt with issues ranging from her independence of thought and ability to effect change to the status quo. Nicola Sturgeon stated that a new independence referendum may be the only way for Scotland, maintaining a significant element of market unease surrounding the political outlook. The government could face defeat in the House of Lords on an amendment to the Article 50 Bill that protects foreign workers rights. The Euro edged towards 1.1700 on the day and the Pound was unable to hold above 1.2450 against the Dollar.

Donald Trump delivered his first address to Congress last night and although Trump received rapturous applause from a very proud Republican Congress, the market reaction was muted, as fiscal details were touched upon. The key takeaways from the speech included a $1 trillion investment infrastructure plan, a reiterated desire for a very large tax cut, and a boost to defence spending. Trump failed to offer any details on how this will all be funded, and hence these details will have to be detailed by Congress in the coming months.

US final fourth-quarter GDP data was unrevised at 1.9% compared with expectations of 2.1% as a higher estimate for consumer spending was offset by a downward revision to government spending and investment. The Chicago PMI index was notably stronger than expected with an increase to 57.4 for February from 50.3 with robust gains in employment and prices on the month. The latest consumer confidence reading was also stronger than expected with an increase to 15-year highs of 114.8 from 111.6 in January which underpinned confidence in the spending outlook.

The Euro traded in narrow ranges during the European session on Tuesday with resistance on approach to 1.0600 against the Dollar. There was little in the way of fresh Euro-zone developments as concerns surrounding the French Presidential election eased slightly.

Data to watch:

7am UK Nationwide Housing Prices s.a (MoM) & (YoY). 8.55am German Markit Manufacturing PMI (Feb). 9am German Unemployment Rate & Change (Feb), Eurozone Markit Manufacturing PMI (Feb). 9.30am UK Net Lending to Individuals (MoM) (Jan),

Markit Manufacturing PMI (Feb), Consumer Credit (Jan), Mortgage Approvals (Jan), M4 Money Supply (MoM) & (YoY) (Jan). 1pm German Flash Consumer Price Index (YoY) & (MoM) (Feb), Flash Harmonised Index of Consumer Prices (YoY) & (MoM). 1.30pm US Personal Consumption Expenditures – Price Index (MoM) (Jan), Core PCE – Price Index (YoY) & (MoM) Jan, Personal Income & Spending (MoM) (Jan). 2.45pm US Markit Manufacturing PMI (Feb). 3pm ISM Manufacturing PMI (Feb), ISM Prices Paid (Feb), Construction Spending (MoM) (Jan). 8pm US FOMC Member Kaplan speaks. 7pm US Fed’s Beige Book. 11pm US FOMC Member Brainard speaks.


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