Newsletter – 14th May 2018

Morning Bulletin

Friday

  • There was relatively little data released Friday, and none out of the UK or Europe.
  • Speaking Friday morning, Bank of England Deputy Governor Broadbent said keeping interest rates on hold at 0.50% this month was a ‘straightforward’ decision. Adding that it made sense for the BOE to wait and see if the economic weakness seen in Q1 was temporary.
  • Jobs data out of Canada was the only real key print Friday afternoon. As expected the overall Unemployment Rate remained at 5.8%, however the number of those employed during April fell by 1,100 against an expected rise of 17,800.
  • US Import Prices m/m 0.3% (0.5% Exp)
  • US Prelim UoM Consumer Sentiment 98.8 (98.4 Exp)
  • Speaking Friday afternoon US Fed Member Bullard argued his case for no further rate hikes for the time being as he believes interest rates may already have reached a ‘neutral’ level that is no longer stimulating the economy.
  • The Turkish Lira tumbled further Friday afternoon following calls from Turkey’s President Erdogan for the central bank to lower interest rates. This call coming despite the fact they have just increased rates to almost 11% in a bid to cool inflation.
Over The Weekend & This Morning

  • UK PM Theresa May held talks with Iranian President Rouhani on Sunday to reassure Iran that the UK and its European partners remain committed to the Nuclear Deal, and to ensure Iran upheld its obligations under the pact.
  • Following their withdrawal from the agreement, the United States have now warned that sanctions could possibly be imposed upon any European companies that do business with Iran. That message coming from the White House national security adviser John Bolton.
  • Japan PPI y/y 2.0% as expected
  • Japan Prelim Machine Tool Orders y/y 22.0% (28.1% Previous)
Today
  • Moves in FX space could be fairly limited today with no data set for release.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1339 +0.04
GBP/USD 1.3583 +0.24
EUR/USD 1.1977 +0.22
AUD/USD 0.7548 -0.02

 

*NO DATA SET FOR RELEASE