Newsletter – 11th June 2018

Morning Bulletin

Friday

  • Sterling lost a modest amount of ground the US dollar but gained on the euro in what was a mixed day for the Pound.
    • GBP/USD opened at 1.3422 and traded a low of 1.3354 and closed 1.3408.
    • GBP/EUR opened at 1.1370 and traded a high of 1.1416 and closed at 1.1383.
  • Canadian employment change came in below expectations at -7.5K vs +19.1K and unemployment rate came in at 5.8% as expected.
Over The Weekend
  • A war of words has erupted between the US and its G7 allies after the group showed unity following a tense summit in Quebec.
    • The US president has posted a series of tweets attacking Canadian Prime Minister Justin Trudeau after rejecting a joint communique.
    • Trump rescinded his signature following a post summit conference by Trudeau and has followed up with tweets stating that Trudeau has made false statements and doesn’t like been ‘called out’.
    • Trump also stated that he will put the US worker first after being criticised by fellow leaders following the introduction of US tariffs.
  • Chinese CPI y/y came in at 1.8% as expected.
Today
  • Sterling has weakened this morning following bad manufacturing production and goods trade balance data from the UK.
    • Manufacturing production m/m came in at -1.4% vs 0.3% expected,
    • Good trade balance came in at -14.0B vs -11.5B expected.
  • GBP/USD and GBP/EUR are currently trading down 0.28% and 0.39%, respectively.
  • There is no further data scheduled for today.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1339 -0.39
GBP/USD 1.3370 -0.28
EUR/USD 1.1791 +0.21
AUD/USD 0.7606 +0.15