Budget fails to impress Sterling

Today's Highlights

Budget fails to impress Sterling

NZ Dollar dips on GDP data

Swiss interest rates on hold

FX Market Overview

I consider myself to be a 'hard working taxpayer' and a 0.3% change in the price of beer isn't going to change my life end neither is a tax cut on Bingo. Does the Chancellor think these are the opiate for the masses as their advert suggests? What folly. Some of the other changes were rather nice but this was a tinkering budget in most respects and the markets barely twitched on the overall effects.

What did help the Pound was a very positive unemployment report. A fall of 34,600 in the number of people claiming unemployment benefits was very welcome and, whilst the Pound didn't rally, it did stabilise. The Pound may get another fillip today if the CBI industrial trends survey is as positive as analysts suggest.

Apart from the possible sighting of wreckage from the missing flight, (I can't imagine what those poor families are going through) the other overnight news from downunder was that the Reserve Bank of Australia believes the weaker Australian Dollar may boost exports. That is a good news story but their main export markets, China and America are not offering the economic growth to create more demand. Hence the Australian Dollar failed to strengthen on the report.

The New Zealand Dollar slipped a little after Quarter 4 growth data revealed 0.9% growth which was bang on expectation. There had been a hint that the figure might surprise to the upside but t'was not to be.

Today's data includes US housing market figures and the interest rate decision by the Swiss National Bank. The US housing data is expected to show a marginal fall in housing starts and that could knock a few pips off the value of the US Dollar. The labour market and housing market have been real laggards in the recovery of the US economy and are both a worry to the Federal Reserve. At yesterday's press conference, new Fed Chair, Janet Yellen spooked the markets by suggesting that unemployment wasn't their major concern so even if it fell to 6.5%; their previously expressed target, no change was likely in interest rates. The dollar slipped a little on that comment but it may have been a little bit of early day nerves from Mrs Yellen causing her to speak a little clumsily.

The SNB kept it minimum exchange rate against the Euro set at 1.20 and maintained their base rate at the 0.0%-0.25% range. The Swiss Franc barely blinked an eye.

Away from the markets, a new App has been launched to help you be more anti-social. It's called 'Cloak' and it uses all the same tools as social apps but offers them in a format that allows you to avoid people you don't want to meet. Gosh, look how far we have come in such a short space of time. Makes you proud doesn't it.

Great Quote

Be the change that you wish to see in the World.