- Chancellor of the Exchequer Philip Hammond delivered a relatively low-key spring Budget yesterday afternoon with the headline changes being that £2bn will be set aside for social care services in England and that the self-employed will now pay on average an extra 60p per week in NI payments.
- On the UK economy, he told the house that growth was expected to be higher than forecast in November with borrowing estimates were now lower than previously stated.
- The pound rallied by a third of a percent off the back of this to reach daily highs of 1.2213 against the US dollar and 1.1555 against the euro before cooling off by the end of the day.
- Elsewhere, US ADP non-farm employment change came in better than expected at 298K vs 184K and revised non-farm productivity q/q also beat expectations at 1.3% vs 1.5%.
- Canadian building permits m/m came in at 5.4% vs 3.1% expected and labor productivity q/q came in as expected at 0.4%.
- We saw inflation data from China released overnight with CPI y/y coming in weaker than expected at 0.8% vs 1.9% and PPI y/y coming in stronger than expected at 7.8% vs 7.6%.
- Attention turns to the Eurozone today with the ECB interest rate announcement at 12.45pm before the accompanying press conference at 1.30pm.
- We also see unemployment claims data from the US at 1.30pm where we expected to see a figure of 239K.