14/02/2017 - European Commission Boosts UK Growth Forecast

GBP

The European Commission boosted the UK's growth forecasts yesterday indicating the impact of Brexit on the country's economy might not be as bad as originally feared. The EU  commission increased its outlook for GDP growth for 2017 to 1.5 per cent, up from the one per cent prediction it gave in November. The Commissions outlook for 2018 remained unchanged at 1.2 per cent, indicating a slowdown in the UK economy will occur as a result of the UK leaving the EU single market.

USD

The dollar rose to a near three-week high boosted by expectations  of U.S. tax cuts to stoke corporate profits and investments. This potential tax stimulus also raised the  probability  of the Federal Reserve raising interest rates more quickly.  The  dollar momentum continued yesterday as  U.S. President Donald Trump on Thursday promised a "phenomenal" tax plan that the White House said would include tax cuts for businesses and individuals.

EUR

In Greece the country’s central bank chief pleaded that Greece must immediately reach an agreement with creditors on the release of bailout funds or risk another recession and further austerity measures,  “Any further delay in completion beyond this month will feed a new circle of uncertainty,” Bank of Greece Governor Yannis Stournaras told said Monday, saying this could make reaching a deal harder. “Such a vicious cycle could return the economy to recession and a rerun of the negative developments that took place in the first half of 2015.”

Key Announcements

09:30 – GBP: UK Inflation rate (YoY) expected to increase from 1.6 to 1.9%

15:00 - EUR: US Fed Chair Janet Yellen Speaks