- The US Dollar just about managed to consolidate those gains made yesterday despite a mixed bag of data and shall we say that small disagreement with North Korea.
- Released in the afternoon there was a fall in US Unit Labour Costs which were expected to rise 1.1%. The actual print of0.6% however will raise some further concerns around broader Inflation expectations in the US, as in theory a rise in labour costs is a leading indicator of overall consumer inflation.
- The other key US data was Non-Farm Productivity q/q, a measure of the goods and services produced per hour by American workers. The print of 0.9% bettered the expected 0.7% and was up massively from the 0.1% rise in the first quarter of 2017.
- According to UK Brexit Minister David Davis, the UK has taken a significant step forward in negotiations with the EU. Mr Davis stated there was a much clearer understanding on details between the two parties, and significant convergence on key issues.
- His confidence however was clearly not shared by markets and investors as Sterling endured a fairly average day in FX space, if not slightly negative.
- There was a massive beat for Canadian Building Permits m/m +2.5% (-1.8% Exp).
- Reserve Bank of New Zealand Official Cash Rate held at1.75% as expected.
- The Kiwi Dollar is under serious pressure this morning as the accompanying RBNZ statement was very dovish, stating that monetary policy would need to remain accommodative for a considerable period.
- Japan Core Machinery Orders m/m -1.9% (3.6% Exp)
- Japan PPI y/y 2.6% (2.4% Exp)
- French Industrial Production m/m -1.1% (-0.6% Exp)
- UK data dominates this morning with the key Manufacturing Production print at 9.30am.
- This afternoon US PPI m/m will be closely watched, as slow inflation growth remains a concern to the US Federal Reserve.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.30||GBP||Manufacturing Production m/m||0.0%||-0.2%|
|09.30||GBP||UK Goods Trade Balance||-11.0Bn||-11.9Bn|
|13.00||GBP||NIESR GDP Estimate||0.3%|
|15.00||USD||US Fed Member Dudley Speaks|