- The pound broke recent lows against the US dollar and euro yesterday with GBP/EUR and GBP/USD closing at their lowest rates for 6 months and 16 months, respectively.
- GBP/EUR opened at 1.1159, traded a high of 1.1162, a low of 1.1109 and closed at 1.1119 representing a 0.33% fall on the day.
- GBP/USD opened at 1.2509, traded a high of 1.2522, a low of 1.2439 and closed at 1.2458 representing a 0.41% fall on Tuesday.
- Conservative leadership hopefuls Boris Johnson and Jeremy Hunt debated live on TV last night with both men clashing on Brexit strategy and UK relations with Donald Trump.
- Mr Johnson said he admired his rival’s ability to change his mind so often referring to the fact that Mr Hunt voted to remain in the 2016 referendum.
- Mr Hunt accused Jonson of not being willing to ‘put his neck on the line’ by saying he would quite as PM if he did not deliver Brexit by the 31st October deadline.
- In regards to Sir Kim Darroch’s spat with US president Donald Trump, Mr Hunt said that the UK decide who their ambassadors are and that if he were to become prime minister then Darrach would remain in his role. Mr Johnson refused to condemn Mr Trump for his response to Darroch’s leaked emails and said he would take ‘important and politically sensitive’ decisions such who would represent the UK in the US.
- Jeremy Corbyn has stated that Labour would back remain should a second referendum be held before taking Britain out of the EU. Corbyn said the party would take this position as an alternative to a ‘no deal or damaging Tory brexit’
- Former prime minister Sir John Major said that he would seek a judicial review in the courts if the new prime minister tried to suspend Parliament to deliver a no-deal Brexit. Major said that such a move would be ‘utterly and totally unacceptable’.
- Chinese CPI y/y came in as expected at 2.7%.
- GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.8023, 1.8895 and 135.95, respectively.
- UK GDP m/m came in at 0.3% as expected. Manufacturing production m/m came in weaker than expected at 1.4% vs 2.2%.
- At 3pm we will have news on Canadian rates from the BOC.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|15:00||CAD||BOC Rate Statement|
|15:15||CAD||BOC Press conference|
|19:00||USD||FOMC Meeting Minutes|