Hammond sets sights on curbing negative Brexit impact on economy
Currencies Direct November 24th 2016 - < 1 minute read
Philip Hammond’s Autumn statement yesterday was busy, as he set his sights on curbing Brexit’s potential economic affect.
He hopes to use £23bn from the National Productivity Investment Fund on new homes, transport connections, research & development, and invest in the digital sector, hoping to keep the economy booming with the expected downturn in outlook long-term.
Some see it as a gamble due to the Government having to make additional borrowings. Government debt is now estimated to be in the region of £220bn more at the end of the current Parliament reign compared to March, when previous estimations were acknowledged, and the shock Brexit win has been a major factor in this new estimation.
Positive EU economy data
The EU economy had positive data to consume yesterday, as the Eurozone PMI data rose from 53.3 in October, to 54.1 in November; an 11 month high. The figures measure economic activity for the single bloc, which will no doubt give Mario Draghi a brief smile, as he debates another potential QE purchase boost shortly.
The latest Fed minutes released yesterday have suggested that a number of key officials expressed a willingness to raise interest rates in December, as an improving economy can handle the move. The current probability is closing in on 100% certain change, come December’s decision.
Data to come
US data is thin today, as Thanksgiving gets underway across the pond, so expect any USD related movements to be off the back of EURGBP volatility and key note speakers addressing their respective audiences. Data in the Eurozone is based around Germany, with Gross Domestic figures on show, as well as GBP Loans for House Purchases.