Daily Market Report - 08/03/2016
There was little movement in the pound on Monday however articles from a leading UK newspaper indicated that the Bank of England has heightened fears that the referendum on EU membership will destabilise the already fragile financial markets. From this they went on to state that the bank of England is pledging to provide extra funds to banks and building societies before and after the vote on the 23rd of June. The funds are said to be available two dates before the 23rd June and on one date after that time
The USD saw some weakness towards the end of the day after the Labor market conditions Index came out at -2.4 against the previous reading of 0.4. This figure is the lowest recorded since the source was first released in 2014. A decrease in this figure is said to be in correlation with an increase in unemployment figures. This poor figure leads to expectations that unemployment figures could rise in the short term.
Monday saw the factory Orders (YoY) (Jan) released for Germany which came out at 1.1%, increasing from the previous figure of -2.2% and beating the expected 0.0% showing a slight expansion for the German economy in terms of new orders within the economy. Along with that we saw the Producer Price Index (YoY) released for Italy which came out at -2.5% up from the previous -3.2%.
Also a deal was proposed by Turkey to resolve the migrant issue as they have agreed to ‘take back all the migrants who are denied asylum in Europe as well as those intercepted in its territorial waters. Turkey have requested 6bn Euros over the space of 3 years, twice the amount offered last November, this is according to a draft version of the summit conclusions.
09:15 – GBP: Mark Carney answers Treasury Select Committee questions about Brexit
10:00 – EUR: Gross Domestic Product (YoY) (Q4) previously at 1.5% and expected to remain unchanged