- As we hit ‘hump day’ the second half of the week becomes far more interesting for data and events. Federal Reserve Chairman Jerome Powell’s two-day semi-annual Congressional Testimony kicks off later today, where markets will look for clues on the timing of the first interest rate cut from the FOMC. Powell is expected to deliver a hawkish testimony following mixed data and ongoing concerns of sticky inflation and a solid labor market. Yesterday’s data came in one the weak side, with the ISM Services report moderating in February to 52.6 from 53.4, slightly below consensus expectations. The ADP Private Payrolls report and JOLT’s job openings are on the docket today but will likely just serve as an appetizer for the main event – Friday’s Non-farm Payroll release. EURUSD made a fresh attempt to the upside again, but was thwarted once again by sellers at 1.0880, a level that offers continual resistance which needs to break to suggest a further test of 1.0925.
- GBPUSD is also higher, following the disappointing US data, with cable breaching 1.27, albeit, with little conviction so far. UK Chancellor Jeremy Hunt delivers his budget later today; however, a pre-election ‘giveaway’ is unlikely based on his governments positioning in the polls. Personal tax cuts appear to be at the centre of his plans with a 2% cut from the National Insurance payroll tax a possibility. A cut in the rate of personal income tax is likely to be in PM Rishi Sunak’s election promise, however the Chancellor is restricted by tight public finances, making a cut today unlikely.
We are using cookies to give you the best experience on our website. Download the GPS Cookies Policy for more information. The main types of cookies we use are as follows: strictly necessary cookies, performance cookies, advertisement cookies, and analytics cookies. You can find out more about which cookies we are using or switch them off in settings. Except for strictly essential cookies, you have also the option to decline the usage of cookies at any time. You can do this through this cookie management panel, which appears when you first visit, and you can access it independently through the link provided at the foot of the page.