Newsletter – 14 March 2017

Morning Bulletin

Yesterday

  • Sterling retreated from recent lows over the course of yesterday’s trading against the Euro and US Dollar, closing the day up 0.60% and 0.50% respectively. GBP/EUR eventually closed just north of 1.1450, whilst GBP/USD hovered around the mid to low 1.2200 area.
  • Sterling was briefly pegged back however as Scottish First Minister Nicola Sturgeon announced her intention to seek authority from the Scottish Parliament to pursue another Scottish independence vote. Of course she would need approval from the UK government before any vote could take place. The First Minister suggested the vote should be held between the fall of 2018 and spring of 2019.
  • ECB President Mario Draghi speaking yesterday was the only potential key event on the calendar, however his speech did not touch upon monetary policy, instead Mr Draghi focused on the weakness in Eurozone productivity and how it could be improved.
  • Italian Industrial Production m/m -2.3% (-0.6%)
Overnight

  • Sterling’s rally proved short lived following the UK House of Commons decision to reject an amendment to the Brexit Bill proposed by the House of Lords. The Pound has been hammered back down this morning, with yesterday’s gains eroded and then some as the amendment to guarantee parliament a vote on the deal with the EU has been rejected by MP’s.
  • The commons also rebuked the amendment that would have guaranteed protection for those EU nationals currently residing in the UK.
  • Sources suggest UK PM Theresa May will reject any Scottish demand for a referendum.
  • FRANCE: Ifop Poll of 1st round intentions: Le Pen 26.5%, Macron 25%.
  • Chinese Industrial Production y/y 6.3% (6.2% Exp)
  • Chinese Fixed Asset Investment ytd/y 8.9% (8.2% Exp)
Today

  • Relatively quiet day data wise.
  • Only key data comes at 1.30pm in the form of US Producer Price Index m/m (0.1% Expected).
  • It won’t impact markets today, but it is worth noting the 2 day US Fed FOMC meeting starts today, with rate decision due tomorrow evening.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1393 -0.65
GBP/USD 1.2130 -0.71
EUR/USD 1.0645 -0.05
AUD/USD 0.7552 -0.24

 

ECONOMIC CALENDAR
Current at time of distribution
Time (GMT) Region Data Release Forecast Previous
10.00 EUR German ZEW Economic Sentiment 13.2 10.4
10.00 EUR Industrial Production m/m 1.2% -1.6%
10.00 USD NFIB Small Business Index 106.1 105.9
12.30 USD PPI m/m 0.1% 0.6%
13.30 USD CB Leading Index m/m 0.0%
21.45 NZD Current Account -2.43Bn -4.89Bn