Newsletter – 10th April 2017

Morning Bulletin


  • Sterling was on the back-foot for the bulk of Friday’s trading following weaker than expected UK Manufacturing Production data in the morning. The decline of 0.1% was worse than the expected 0.3% growth forecast for February.
  • The Pound’s weakness was further compounded by commentary from Bank of England Governor Mark Carney. Despite addressing an audience on the impact of Brexit on financial stability, the Governor suggested he was seeing signs that consumer spending was slowing in the UK.
  • The Pound opened the morning’s trading at 1.2460 and 1.1711 against the US Dollar and Euro respectively before closing the day down at 1.2395 (-0.61%) and 1.1687 (-0.27%).
  • Rating Agency Fitch cut South Africa’s credit rating to junk (BB+); stating outlook is stable.
  • The afternoon was dominated by Employment data out of Canada and the United States:
    • US Unemployment Rate 4.5% (4.7% Exp)
    • US Non-Farm Employment Change 98K (174K Exp)
    • US Average Hourly Earnings m/m 0.2% as Expected
    • Canadian Employment Change 19.4K (5.7K Exp)
    • Canadian Unemployment Rate 6.7% Expected
  • The US Dollar did briefly dip following the disappointing Non-Farm print however it quickly recovered to finish the day positively. There were suggestions that the employment change was low due to weather related factors hitting employment in the construction sector.
  • The Canadian Dollar rallied hard in the afternoon following the positive jobs numbers above.
  • The IMF said the likelihood of successfully concluding discussions on a Greek bailout were good, but that they also need to see the Eurozone offer assurances on Greek debt sustainability.

Over The Weekend

  • Japanese Current Account 2.21 Tn (1.79Tn Exp)
  • Australian Home Loans m/m -0.5% (0.1% Exp)
  • US Dollar ever so slightly dampened this morning following commentary from US Fed Member Bullard who suggested there was no rush to raise interest rates.
  • FRENCH ELECTIONS: A Kantar Sofres Poll released Sunday now shows Melenchon is very much in the race: 1st Round: Macron & Le Pen 24%; Melenchon 18%; Fillon 17%.
  • Typically quiet Monday in prospect with no key data due for release.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1705 +0.26
GBP/USD 1.2390 +0.17
EUR/USD 1.0584 -0.05
AUD/USD 0.7482 -0.25


Time (GMT) Region Data Release Forecast Previous
09.00 EUR Italian Industrial Production m/m 0.4% -2.3%
09.30 EUR Eurozone Sentix Investor Confidence 20.1 20.7
13.15 CAD Housing Starts m/m 212K 210K
14.45 EUR ECB Weekly QE Update
15.00 USD Labour Market Conditions Index m/m 1.3
21.00 USD Fed Chair Yellen Speaks