It’s All So Quiet…
Good morning. Yesterday saw stronger than expected German retail sales as they jumped 2.9% month-on-month and expanded 5.3% for the year. This caused a slight ripple in the market but as the current trends are so firmly against the Euro, GBP and USD soon recovered against it. Manufacturing data from the US was mixed which seems to fall in line with much of recent data from the US. However, the Dollar has been strengthening of late after a weak February.
In an interesting development, the Spanish Economy Minister implied that the Eurozone countries are discussing a new Greek rescue package with more flexible conditions. This, however, was denied by an EU spokesman and by Greek PM Tsipras.
In Australia, the Reserve Bank of Australia surprised the markets by keeping rates on hold. Whilst most were expecting the RBA to cut rates, they instead decided to adopt a “wait and see” approach. This is probably due to the fact that the Australian economy has recently been buoyed by building approvals jumping 7.9% in January and house prices surging.
It’s a bit of a quiet day ahead as markets will look to the UK’s construction PMI for market movements. Otherwise we await a busy second half of the week with rate decisions and meetings from Canada, the UK and the Eurozone.