Newsletter – 13 February 2017

Morning Bulletin

Friday

  • There was a second consecutive blowout UK Manufacturing Production print Friday morning, which saw Sterling rally in FX space. There was a 2.1% rise in Manufacturing Production for December, smashing the expected 0.5%.
  • Further bolstering Sterling, there was a narrowing in the UK’s Goods Trade Balance reported. A deficit of 11.5Bn was expected however the actual figure was 10.9Bn.
  • Canadian data took centre stage Friday afternoon and it didn’t disappoint with 48,300 (-10,100 Exp) more people in employment in January and the official unemployment rate dropping to 6.8% from a previous 6.9%.
  • There were also two US economic data releases of note Friday afternoon:
    • Import Prices m/m 0.4% as expected
    • Prelim UoM Consumer Sentiment 95.7 (97.9 Exp)
  • Speaking Friday afternoon ECB member Nowotny said the central bank would look to discuss options regarding their QE program towards the middle of 2017; adding at present there is no reason to deviate from the current plan.
Overnight

  • Japan Prelim GDP q/q 0.2% (0.3% Exp)
  • Speaking overnight, US Fed Vice Chair Stanley Fischer acknowledged that there is significant uncertainty about US Fiscal Policy under Trump’s administration; however he said the Fed would continue to operate according to the law, maintaining full employment and hitting 2% inflation.
  • Speaking on German radio EU President Juncker said the Greek plan is ‘on shaky ground’.
Today
  • No data releases of any note due today so could be a quiet day in progress.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1752 +0.20
GBP/USD 1.2519 +0.30
EUR/USD 1.0652 +0.16
AUD/USD 0.7672 +0.01

 

ECONOMIC CALENDAR
Current at time of distribution
Time (GMT) Region Data Release Forecast Previous
10.25 BRZ Central Bank Weekly Econ forecasts
14.45 EUR ECB Weekly QE Update
21.45 NZD Food Prices -0.8%