Newsletter – 13th June 2017

Morning Bulletin


  • Sterling fell back to its recent lows against both the euro and the US dollar yesterday.
  • GBP/EUR came off from 1.1375 to close at 1.1310 representing a fall of just half of a percent and GBP/USD came off by just under half a percent to close at 1.2658.
  • PM Theresa May met with Conservative backbenchers yesterday to assess and discuss the party’s election performance. It was widely reported that May apologised to MPs, telling them “I got us into this mess and I’ll get us out of it”.
  • First Secretary of State Damian Green could not confirm that the Queen’s speech will go ahead as planned on the 19th June.
  • Labour said that their performance in the election showed that voters had made their opposition to an ‘extreme Brexit’ quite clear.
  • Elsewhere US President Donald Trump is considering firing Robert Mueller after his credibility had recently been attacked by conservatives. Mr Mueller is overseeing the investigation into alleged Russian interference in last year’s presidential election.
  • It was a quiet day on the data front yesterday with only Italian Industrial Production m/m coming in weaker at -0.4% vs 0.2% of note.
  • NAV Business Confidence from Australia came in with a figure of 7 overnight falling from a figure of 13 last time out.
  • GBP/AUD and GBP/NZD are currently trading at 1.6819 and 1.7589, respectively.
  • Theresa May is set to hold talks with DUP leaders today in Downing Street. Arlene Foster will visit London to negotiate terms which will keep the Conservatives in power.
  • Later, Mrs May will have lunch with French President Emmanuel Macron and will discuss how the countries can work together to tackle online radicalisation and terrorism.
  • At 9.30am we have inflation data from the UK in the form of CPI y/y and RPI y/y before ZEW economic sentiment is released from Germany at 10am.
  • At 1.30pm we expect PPI m/m from the US.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1320 +0.09
GBP/USD 1.2704 +0.36
EUR/USD 1.1217 +0.13
AUD/USD 0.7545 +0.07


Time (GMT) Region Data Release Forecast Previous
09:30 GBP CPI y/y 2.7% 2.7%
09:30 GBP PPI Input m/m -0.5% 0.1%
09:30 GBP RPI y/y 3.5% 3.5%
10:00 EUR German ZEW Economic Sentiment 21.6 20.6
13:30 USD PPI m/m 0.0% 0.5%
13:30 USD Core PPI m/m 0.2% 0.4%