IFX Market Report: Wednesday 16th March 2022

Upbeat UK employment data boosted the Pound’s performance yesterday, allowing it to make gains against both the Dollar and Euro. Peace talks between Russia and Ukraine continued on Tuesday as three European prime ministers travelled to Kyiv “for the first visit of its kind since war began”. The fact that foreign leaders “could attempt to visit the Ukrainian capital was a striking symbol of Ukraine's success so far in fending off an assault that Western countries believe was aimed at seizing Kyiv weeks ago”. Czech Prime Minister Petr Fiala said the aim of the visit was “to confirm the unequivocal support of the entire European Union for the sovereignty and independence of Ukraine”. Polish Prime Minister added that “it is our duty to be where history is forged. Because it's not about us, but about the future of our children who deserve to live in a world free from tyranny”.

After testing 1.3000 Cable staged a rebound on Tuesday and maintained momentum till the end of the session. GBPUSD opened at 1.3032 and closed at 1.3049.

GBPEUR also made make gains on Tuesday. The pair started at 1.1843 and finished at 1.1910.

EURUSD experienced minor losses yesterday and closed just below the 1.10 handle. The pair opened at 1.1004 and closed at 1.0955.

On the data front, it’s a busy schedule for the US. At 12:30 Retail Sales are published and expected at 0.4% with a previous of 3.3%. Other US data releases today are MBA Mortgage Applications, Business Inventories, and NAHB Housing Market Index. The highlight of today will of course be this month’s Federal Reserve Interest Rate Decision and the FOMC Economic Projections. The event will kick off at 18:00 and followed by a press conference 30 minutes later.

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