Newsletter – 3 January 2017

Morning Bulletins

Friday:

  • The recent bout of Euro strength continued into Friday’s trading and the single currency was further underpinned by much better than expected Spanish CPI data released in the morning. The CPI print y/y was almost double that expected at 5% and also represented the highest reading since July 2013.
  • There was very little else to report Friday on the data front.
  • Sterling was one of the day’s better performers alongside the Euro. By 3pm the Pound was up on the day versus all of its major currency counterparts, most notably by 1.13% against the Kiwi Dollar (1.7785) and by 0.8% against both the US Dollar (1.2355) and the Aussie Dollar (1.7110).

Over The Weekend and This Morning

  • Some of the Key data released:
    • Chinese Manufacturing PMI 4 (51.6 Exp)
    • Eurozone Final Manufacturing PMI 9 as Expected
    • Chinese Caixin Manufacturing PMI 9 (50.9 Exp)
  • Having threatened to settle below the 1.1700 handle last week, importantly GBP/EUR has broken up into the Mid 1.1700’s this morning.
  • Worth noting markets are not completely back to normal today with Japanese, New Zealand and Thai markets all closed for public holidays.

Today:

  • We could see plenty of activity in FX markets today as investors and traders from around the globe begin settling back into the office for 2017. Not a huge amount of data due for release, key however will be UK Manufacturing PMI this morning and then US ISM Manufacturing PMI data later this afternoon.

Major Currency Pairs

(PLEASE NOTE THESE RATES ARE AT TIME OF DISTRIBUTION)

Currency

Pair

Interbank

Rate

% change on day
GBP/EUR 1.1770 +0.26%
GBP/USD 1.2284 +0.07%
EUR/USD 1.0433 -0.18%
AUD/USD 0.7211 +0.43%


Economic Calendar

(ALL TIMES GMT)

Time Region Data Release Forecast Previous
08.55 EUR German Unemployment Change -5K
09.30 GBP Manufacturing PMI 53.4
14.30 CAD RBC Manufacturing PMI 51.5
TBC NZD GDT (Dairy) Price Index -0.5%
14.45 USD Final Manufacturing Index 54.2
15.00 USD ISM Manufacturing PMI 53.2
15.00 USD Construction Spending m/m 0.5%