Newsletter – 15th December 2017

Morning Bulletin 

Yesterday

  • 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.

Overnight

  • 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.

Today

  • 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
GBP/EUR 1.1365 -0.32
GBP/USD 1.3413 -0.11
EUR/USD 1.1800 +0.19
AUD/USD 0.7672 +0.09

 

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%