- GBP/USD held Thursday’s gains yesterday and ticked up by a few points following the Bank of England’s decision to keep rates unchanged and renewed doubts of the long-awaited US tax cut legislation.
- UK retail sales came in stronger than expected yesterday which gave cable a boost and even stronger than expected US data did not dampen the positive sentiment.
- GBP/USD opened 1.3417 and closed up just under a tenth of a percent at 1.1.3428.
- The Bank of England’s Monetary Policy Committee all voted in favour to keep rates unchanged at 0.5%
- US core retail sales m/m came in at 1% vs 0.6% expected, retail sales m/m also came in better than expected at 0.8% vs 0.3% and unemployment claims came in at 225K vs 237K expected.
- From Japan Tankan manufacturing index came in at 25 when 24 was expected but Tankan non-manufacturing index came in weaker than expected at 23 vs 24 expected.
- EU leader are expected to formally agree to start the phase of Brexit negotiations today. PM May was applauded following a speech to the leaders urging them to embrace the way ahead with ‘creativity and ambition’.
- At 1.15pm MPC member Haldane is due to speak at the Internation Rome Conference in Palermo.
- This afternoon we expected manufactuing sales m/m data from Canada along with Empire state manufacturing index at 1.30pm. Capacity utilization rate and industrial production m/m from the US is due at 2.15pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13:15||GBP||MPC Member Haldane Speaks|
|13:30||CAD||Manufacturing Sales m/m||0.9%||0.5%|
|13:30||USD||Empire State Manufacturing Index||18.8||19.4|
|14:15||USD||Capacity Utilization Rate||77.2%||77.0%|
|14:15||USD||Industrial Production m/m||0.3%||0.09%|