Newsletter – 10th December 2018

Morning Bulletin

Friday

  • Sterling fell to its lowest value against the euro since the end of September as GBP/EUR dropped to 1.1172. It had opened at 1.1234 and traded a high of 1.1241, a low of 1.1152 before settling at 1.1172 representing a 0.55% fall on the day.
  • GBP/USD opened at 1.2779, traded a high of 1.2790, a low of 1.2711 and closed at 1.2729 representing a loss of 0.39% on the day.
  • Analysts at JP Morgan said on Friday that the odds of the UK staying in the EU had doubled to 40%,
  • Canadian employment change came in far better than expected at 94.1K vs 10.5K and their unemployment rate came in at 5.6% vs 5.8%.
  • US average hourly earnings m/m and non-farm payrolls came in at 0.2% vs 0.3% and 155k vs 198k, respectively. The unemployment rate came in as expected at 3.7%.
Over the Weekend
  • Richard Tice, head of Leave Means Leave said he could see Theresa May calling a second EU referendum and believes there is a 50/50 chance that it will happen.
  • Chinese trade balance came in better than expected at 306B vs 227B.
Today
  • UK GDP m/m is expected to come in at 0.1% this morning and manufacturing production m/m is expected to come in at 0.0%.
  • MPs will make their final arguments before they vote on Theresa May’s Brexit deal tomorrow.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1138 -0.30
GBP/USD 1.2722 -0.05
EUR/USD 1.1419 +0.24
AUD/USD 0.7222 +0.33
Time (GMT) Region Data Release Forecast Previous
09:30 GBP GDP m/m 0.1% 0.0%
09:30 GBP Manufacturing Production m/m 0.0% 0.2%