Crimea Affects German Business Confidence
This morning, it is data from Germany and the UK which will determine whether the GBP strengthens or weakens for the rest of the day. German IFO Confidence has just been released and is down to a level of 110.7 which is down from the 111.3 level in February, which was the highest since July 2011. This decrease has mainly been due to the economic sanctions placed on Russia as German companies have seen this impact on them. Later on, we shall hear Mario Draghi speak and await his latest bout of confidence in the Eurozone.
The data released from the UK today is February’s CPI report which analysts expect to see the year-on-year inflation rate ease back to 1.7%. This level may not be overly positive for the Pound as could be seen as meaning a move to normalize monetary policy ma be relatively more distant than implied by the priced-in status quo.
The situation in The Crimea is still taking centre stage with Vladmir Putin being practically evicted from the G*. Rather than attend the next G8 meeting in Sochi, the Group of Seven have said they will instead attend their own summit in Brussels in June.