020 7898 0500The key economic data release yesterday was the Fed’s interest rate decision which, as expected, increased by 25 basis points to 1.75%. Powell spoke at the subsequent press conference and by all accounts gave a good account of himself. He was positive about the US economy, but suggested there would be only three hikes in 2018 (many had been expecting four). This helped sterling climb to a six-week high against the dollar.
The other main release from the US was the existing home sales figures for February. They had been expected to rise from 5.38 million in January to 5.4 million in February, but the release beat forecast by coming in at 5.54 million.
Today we will see the Markit composite, manufacturing and services flash PMI readings for March, as well as the initial jobless claims in the week up to 17 March.
