Newsletter – 13th November 2017

Morning Bulletin

Friday

  • Sterling gained a modest amount of ground on the both the euro and the US dollar on Friday.
  • Sterling opened at 1.1287 against the euro and traded as high as 1.1344 before cooling off to close at 1.13.
  • There was a similar pattern in cable with the sterling trading a high of 1.3229 against the dollar from an open of 1.3144 before closing at 1.3189.
  • Sterling’s strength came from stronger than expected manufacturing production data early on Friday. Previously this figure came in at 0.4% and was expected to dip to 0.3% this time around. The figure actually came in at 0.7% alongside a better than expected goods trade balance figure from the UK (-11.3B vs -12.9B).
  • UK construction output disappointed however, with it falling 1.6% from August. Industrial production grew 1.1% in Q3 but construction fell for a second consecutive quarter with a 0.9% decline vs 0.7% expected.
  • In a joint press conference with Brexit Minister David Davis, his EU counterpart Barnier said that progress has been made on citizens rights and that real progress on three key issues will open the second phase of talks and that the EU would need an answer within a fortnight on financial settlement.
  • Davis said that now is the best time to seek solutions and said that the UK is ready and significant progress across the board has been made.
Over The Weekend
  • USA President Donald Trump took exception to Kim Jong Un calling him ‘old’ recently and tweeted sarcastically that he would never call the North Korean leader ‘short and fat’. He also said that he tries hard to be his friend and that ‘maybe someday it will happen’.
  • The Sunday Times yesterday reported that 40 Conservative Party MP’s had agreed to sign a letter of no confidence in Prime Minister Theresa May.
Today
  • The Times report has caused sterling to drop across the board this morning with the value of the pound falling by 0.7% against the euro and Aussie dollar and nearly 1% against the US dollar and Japanese Yen.
  • In terms of data, we have a typically quiet Monday ahead with only a speech from Bank of Japan Governor Kuroda ahead at 5.45pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1224 -0.68%
GBP/USD 1.3071 -0.89%
EUR/USD 1.1644 -0.16%
AUD/USD 1.1056 +0.15%

 

Time (GMT) Region Data Release Forecast Previous
17:45 JPY BOJ Gov Kuroda Speaks