Newsletter – 12th June 2018

Morning Bulletin


  • Sterling lost ground on both the euro and US dollar yesterday.
    • GBP/USD fell by 0.26% after opening at 1.3376 and closing at 1.3407.
    • GBP/EUR fell by 0.35% after opening at 1.1395 and closing at 1.1354.
  • There was very little in the way of economic data yesterday with only UK manufacturing production m/m and goods trade balance data released – both of which fell short of expectations at -1.4% vs 0.3% and -14.0B vs -11.5B, respectively.
  • History was made yesterday as US president Donald Trump met with North Korean leader Kim Jong-un in Singapore.
    • The two greeted each other with a choreographed 13-second handshake in front of the world’s media.
    • The two leaders have signed an agreement which is slightly lacking in detail at the point of writing – it only commits the USA and North Korea to the denuclearisation of the Korean peninsular.
    • Trump has said that the US is not reducing military capabilities as part of assurances it will provide North Korea but he says the US will stop its military exercises with South Korea which have historically infuriated Pyongyang.
    • Trump said that the Kim is “already destroying a major missile site”.
  • NAB business confidence from Australia came in at 6 vs 11 the last time out.
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.7592, 1.9046 and 147.67, respectively.
  • We will continue to hear from President Trump and Kim Jong-un following the historic meeting between the leaders of the US and of North Korea.
  • UK average earnings index 3m/y, claimant count change and unemployment rate came in at 2.5% vs 2.5%, -7.7K vs 11.3K and 4.2% vs 4.2%, respectively.
  • German ZEW economic sentiment came in weaker than expected at -16.1 vs -14.6.
  • Later today we have CPI m/m and core CPI m/m from the US at 1.30pm.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1366 +0.11
GBP/USD 1.3407 +0.26
EUR/USD 1.1794 +0.10
AUD/USD 0.7615 +0.08


Time (GMT) Region Data Release Forecast Previous
13:30 USD CPI m/m 0.2% 0.2%
13:30 USD Core CPI m/m 0.1% 0.1%