Newsletter – 5th June 2018

Morning Bulletin


  • Sterling lost ground on the euro and US dollar yesterday.
    • GBP/EUR fell by just over half of a percent; closing at 1.1383 after opening at 1.1445.
    • GBP/USD opened at 1.3340 and traded a high 1.3398 before closing down just under a fifth of a percent at 1.3314.
  • UK construction PMI came in at 52.5 vs 52.0 expected.
  • Tenreyro, member of the monetary policy committee said that UK rate rises will be needed however it just a matter of timing and that is an ‘open question’. Tenreyro expects a gradual tightening of monetary policy will be needed over the next 3 years.
  • Prime Minister Theresa May told US president Donald Trump that the new US steel and aluminium tariffs are “unjustified and deeply disappointing” while International Trade Secretary Liam Fox said the response to the US tariffs must be “measured and proportionate”.
  • It was announced yesterday that there will be a series of votes in the House of Commons on the EU Withdrawal Bill on the 12th June.
  • Australian current account data came in at -10.5B vs -9.9B expected.
  • The cash rate from Australia came in at 1.50%.
  • Caixan services PMI from China came in at 52.9 as expected.
  • UK services PMI has come in stronger than expected at 54.0 vs 52.9 expected.
  • At 1.30pm we have labour productivity q/q from Canada which will be followed by ISM non-manufacturing PMI from the US at 3pm.
  • We expected to hear from MPC member Cunliffe at 11am.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1417 +0.30
GBP/USD 1.3371 +0.43
EUR/USD 1.1713 +0.13
AUD/USD 0.7637 -0.13


Time (GMT) Region Data Release Forecast Previous
11:00 GBP MPC Member Cunliffe Speaks
13:30 CAD Labor Productivity q/q 0.3% 0.2%
15:00 USD ISM Non-manufacturing PMI 57.9 56.8