Newsletter – 16th May 2017

Morning Bulletin

Yesterday

  • Sterling lost ground on the euro yesterday for the third consecutive day which takes GBP/EUR back down the 1.1725 mark. This level has been the floor for the past month and if we see GBP/EUR fall below this then the next support level for the pair will be in the mid 1.16s.
  • GBP/EUR was trading 1.1787 on Monday’s open, pushing just above 1.18 briefly before coming off to 1.1747 in the evening representing a drop of just over a third of percent on the day.
  • The euro also gained value on the US dollar during yesterday’s session. EUR/USD opened at 1.0929 before gradually gaining throughout the day to close at 1.0974.
  • Newly-elected French President Macron said yesterday that he will work with Germany to reform the Eurozone and provide more protection for the people of Europe.
  • GBP/USD continued to trade within it’s recent range of between 1.2850 – 1.30 with cable opening just below 1.29, then pushing up to 1.2940 before closing at 1.2893.
  • Prime Minister Theresa May took part in a Facebook Live interview hosted by ITV News yesterday. Members of Facebook had the opportunity to ask May questions using the social platform – one of the questions was from Labour leader Jeremy Corbyn who used his account to ask the Prime Minister why she refused to have a televised debate with leaders of the opposing parties in the lead up to June’s general election. Her response was that she would rather answer questions from voters rather than opposition leaders. Corbyn later criticised the PM for refusing to defend her record.
  • It was a relatively quiet day on the data front yesterday with Swiss PPI coming in weaker than expected at -0.2% vs 0.0% expected and Empire state manufacturing index coming in much weaker than expected at -1.0 vs 7.2 expected.
Overnight
  • The RBA released minutes from their latest monetary policy meeting last night. The minutes were consistent with previous releases and contained no surprises. AUD/USD is trading 0.7420 and GBP/AUD is currently at the 1.7428 mark.
Today
  • We have UK CPI y/y released alongside PPI input m/m and RPI y/y at 9.30am with 2.6% being the expected CPI figure.
  • Following that we have Flash GDP q/q from the Eurozone at 10am and US building permits from 1.30pm.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1722 -0.21
GBP/USD 1.2935 +0.33
EUR/USD 1.1033 +0.54
AUD/USD 0.7423 +0.16

 

Time (GMT) Region Data Release Forecast Previous
09:30 GBP CPI y/y 2.6% 2.3%
09:30 GBP PPI Input m/m 0.1% 0.4%
09:30 GBP RPI y/y 3.4% 3.1%
10:00 EUR Flash GDP q/q 0.5% 0.5%
10:00 EUR German ZEW Economic Sentiment 22.3 19.5
13:30 USD Building Permits 1.27M 1.27M
13:30 USD Housing Starts 1.26M 1.22M
14:15 USD Industrial Production m/m 0.4% 0.5%
23:45 NZD PPI Input q/q 1.0%