Newsletter – 17th May 2018

Morning Bulletin


  • The euro lost value against both the US dollar and sterling yesterday following reports that Italy’s anti-establishment 5-Star movement and far-right League plan to ask the ECB to forgive €250 billion of debt (RTE).
  • The single currency fell to a 5-month low of 1.1763 against the dollar during the afternoon session recording a loss of a quarter of a percent after closing at 1.1806.
  • GBP/EUR rallied back to the highs of last week opening at 1.1405 and closing higher by one third of a percent at 1.1442.
  • The US seems to have shrugged off suggestions that North Korea could pull out of their planned summit following reports that Pyongyang were unhappy about ‘one-sided demands’. President Trump yesterday said he has not been told that the summit has been cancelled and when asked it will go ahead, he replied with “we’ll see”.
  • Most of Wednesday’s data came from the US however in the morning final CPI from the Eurozone came in as expected at 1.2% and Canadian manufacturing sales m/m exceeded expectations at 1.4% vs 1.1% expected.
  • US building permits came in as expected at 1.35m, housing starts fell slightly short at 1.29M vs 1.32M, Capacity utilisation rate was slightly down at 78.0% vs 78.4% but industrial production m/m was slightly better than expected at 0.7% vs 0.6%.
  • Australian employment change came in at 22.6K vs 19.8K expected and the unemployment rate came in at 5.6% vs 5.5% expected.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.7954, 1.9616 and 149.52.
  • Slightly quieter day ahead on the economic data front, we have foreign securities purchases from Canada at 1.30pm alongside.
  • Philly Fed manufacturing index is due at 1.30pm alongside US unemployment claims.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1449 +0.06
GBP/USD 1.3527 +0.31
EUR/USD 1.1813 +0.05
AUD/USD 0.7533 +0.24


Time (GMT) Region Data Release Forecast Previous
13:30 CAD Foreign Securities Purchases 3.00B 3.96B
13:30 USD Philly Fed Manufacturing Index 21.1 23.2
13:30 USD Unemployment Claims 216K 211K