Market themes of the Day: Powell's testimony 2.0 and Canada's core inflation headline

What you need to know before markets open
Main themes:  

• The Bank of England governor Mark Carney said during the Treasury Select Committee's February Inflation Report hearing that given the exceptional circumstances of Brexit, I would expect Monetary Policy Committee to provide whatever monetary support it can consistent with the price stability remit. In the no-deal Brexit scenario, MPC’s tolerance for sustained overshoot of inflation target could be breached and some tightening would be required. 
• Sterling outperformed on Tuesday as the UK Prime Minister Theresa May outlines Brexit endgame, including possible extension.
• The Federal Reserve’s chairman Jerome Powell Congressional testimony confirmed the message of “patience” needed when adjusting the monetary policy. Powell is scheduled for the second day of Congressional testimony on Wednesday.
• The Bank of Canada core inflation measure is expected to remain stable even with the headline inflation decelerating.

Europe

• German Gfk consumer confidence remained unchanged to 10.8 in March.
• The ECB executive board member Yves Mersch that the ECB is determined to push forward instant payment system also using EU regulatory capacity.
• Bundesbank President and the ECB Governing Council member Jen Weidmann is scheduled to speak about the Bundesbank’s Annual Report, in Frankfurt at 10:00 GMT.
• The ECB executive board member Benoit Coeure is scheduled to speak at the joint ECB, Deutsche Bundesbank and Federal Reserve Bank of Chicago conference on CCP Risk Management in Frankfurt at 8:30 GMT.

UK

• The Bank of England governor Mark Carney said during the Treasury Select Committee's February Inflation Report hearing that given the exceptional circumstances of Brexit, I would expect Monetary Policy Committee to provide whatever monetary support it can consistent with the price stability remit. In no-deal Brexit scenarios, MPC’s tolerance for sustained overshoot of inflation target could be breached and some tightening would be required. 
• The UK Labor party said to plan 2nd referendum amendment for Wednesday, adding to the Brexit drama.
• The UK Prime Minister Theresa May outlined Brexit endgame, including a possible extension in massive support for Sterling.

US

• The New York Federal Reserve Bank Chairman Jerome Powell delivers a Congressional testimony on the Semiannual Monetary Policy Report before the Senate Banking Committee.
• The Conference Board consumer confidence rose above expectations to 131.4 in February from a revised 121.7 reading for January.
• The US durable goods orders are expected to rise by 0.2% m/m in January.
• The second day of Federal Reserve Chair Jerome Powell testifying in the US Congress is expected to basically repeat the same monetary policy outlook message.

Canada

• The Bank of Canada core inflation measure is expected to decelerate to 1.5% y/y in January.