Australian Dollar hit a 4 month high
Article 50 triggered on March 29th
UK inflation data is main focus for today
Current Market Overview
The Australian Dollar's hit a four month high overnight but then lost momentum after strong housing data and the Reserve Bank of Australia (RBA) minutes. The RBA highlighted in the minutes the risks from the heat-up in housing markets.
In the UK, the Bank of England chief economist Andy Haldane said that low interest rates could have hurt productivity. He pointed out that the "total factor productivity" had its longest stagnation in history since the financial crisis. And low interest rates had kept unproductive businesses alive.
With regard to Brexit, Theresa May's spokesman James Slack said that Article 50 will be triggered next Wednesday on the 29th March. European Council President Donald Tusk has been informed of the plan. President Tusk has said he expects an initial response within 48 hours. Hopefully negotiations will start promptly.
In the USA, Chicago Fed President Charles Evans said the Fed is on track for two more rate hikes this year. Meanwhile, he maintained that a total of three hikes this year is entirely possible.
Elsewhere, UK inflation data will be the main focus in the European session. Headline CPI is expected to jump to 2.1% in February and core CPI is expected to rise to 1.7%. The Swiss will also release a trade balance. Later in US session, Canada will release their retail sales data while the US will release Q4 current account figures.
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