In your weekly supermarket trip you’ve likely seen a huge range of plant-based goods on the shelves. Despite this already buoyant growth, the sector is set to grow further by nearly 9% between 2022 and 2027. Consumers are quickly recognising the health and climate benefits of a plant-based diet.
- UK deficit expected to narrow
- German economic sentiment forecast to rise
- EUR likely to strengthen on confidence figures
The pound may be able to build on its recent gains later this morning as the UK’s latest public sector finances are expected to show that UK government borrowing slid last month.
An expected uptick in tax returns ahead of the New Year is expected to see the public deficit narrow from -£8.12bn to -£4.2bn in December, with the UK government borrowing less to balance the books.
Such a sharp drop in borrowing is likely to bolster Sterling as it supports Chancellor Philip Hammond’s plans to eliminate the deficit.
EUR poised to rise on German economic sentiment figures
The euro may also advance this morning as Germany publishes its latest economic sentiment index.
Economists forecast the ZEW sentiment index will have climbed from 17.4 to 17.8 in January.
However there remains some downside risks to the index, with concerns over the ongoing coalition talks between Angela Merkel’s CDU and the SPD possibly causing sentiment to remain subdued at the start of the year.
Eurozone consumer confidence also expected to climb
The euro could be prompted to extend its gains later in the afternoon as the Eurozone releases its latest consumer confidence data.
The flash reading is expected to see the confidence index tick up from 0.5 to 0.6 as broad improvements in employment and wage growth across the bloc help to bolster household sentiment.
This will see the index report only its second positive reading in over 15 years and hold well above the long-term average of -12.03.
An uptick in sentiment would also see the index rise to its highest levels since 2001 and confirm that consumers are becoming increasingly upbeat in their economic outlook.
Tuesday, 23 January, 2018
09:30 GBP Public Sector Borrowing
10:00 EUR German ZEW Economic Sentiment Index
15:00 EUR Consumer Confidence
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)