Market insights

Pound Surges Briefly Versus The Euro

After a solid 48 hours of market data, rates have returned to status quo.

Most figures came in in line with expectation, so whilst there was short term volatility around the releases, rates have settled down subsequently.

The move of note was GBP/EUR.

Yesterday saw the Bank of England keep their base rate at 4.5%.

However the MPC vote count came in at 8 for unchanged and 1 for a cut which as slightly off the 7 to 2 expected.

This caused a short term bump for the Pound to briefly retest technical resistance before dropping back.

Technical resistance is where demand initially outweighs supply, pushing the price up, but eventually the balance turns and selling becomes dominant dropping rates back.

Todays big story is the scheduled speech by the US President, Donald Trump, at 3pm this afternoon. With all that's happened since January this will be closely watched to see which direction the US is travelling next.

Business news covers the higher than expected public borrowing in the UK for February. This puts further pressure on the Chancellor ahead of next weeks Spring Statement.

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Economic calendar

US: 15:00 President Trump Speech

As ever we look forward to keeping you in the loop and look out for our next update.

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