Newsletter – 15th September 2017

Morning Bulletin


  • Sterling absolutely rocketed yesterday afternoon following the Bank of England’s Monetary Policy meeting. The BOE voted to keep rates at 0.25% in a 7-2 vote as expected however it was the minutes which sparked the Sterling rally.
  • The minutes revealed that members were prepared to tighten monetary policy (Increase interest rates) in the coming months should underlying inflation continue to persist at current or higher levels.
  • BOE Governor Carney also added that he was amongst the members who shared the view that tightening of policy would be necessary should prices keep rising.
  • Sterling rallied aggressively in FX space following the BOE meeting hitting a day’s and close on two-month high of 1.1277. The pound actually hit a 12-month high of 1.3405 against the US Dollar.
  • US CPI m/m 0.4% (0.3% Exp)
  • US Unemployment Claims 284K (303K Exp)
  • Speaking in the afternoon ECB member Weidmann reiterated his view that QE was no longer justifiable and as such the ECB should be easing up on stimulus. He did add however easy monetary policy was still required to tackle low inflation.

  • Business NZ Manufacturing Index 57.9 (55.5 Prior)
  • The UN Security Council is due to meet this afternoon to discuss North Korea missile test.
  • Fairly full data calendar to end the week, albeit it very much US-centric. US Retail Sales is our key figure due at 1.30pm.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1270 +0.24
GBP/USD 1.3436 +0.30
EUR/USD 1.1921 +0.03
AUD/USD 0.8006 +0.05


Time (GMT) Region Data Release Forecast Previous
10.00 EUR Eurozone Trade Balance 20.1Bn 22.3Bn
12.00 GBP BOE Quarterly Bulletin
13.30 USD Retail Sales m/m 0.1% 0.6%
13.30 USD Empire State Manufacturing Index 18.2 25.2
14.15 USD Capacity Utilization Rate 76.8% 76.7%
14.15 USD Industrial Production m/m 0.1% 0.2%
14.30 GBP CB Leading Index m/m -0.1%
15.00 USD Prelim UoM Consumer Sentiment 95.1 96.8