Newsletter – 17th September 2018

Morning Bulletin 


  • Sterling made ground on the euro on Friday with GBP/EUR opening at 1.1206 and trading a low of 1.1195 before rallying to the high of the day at 1.1246 and closing and 1.1237. This represented an increase on the day of just under a third of a percent.
  • The US dollar clawed some value back against the pound on Friday despite weaker than expected retail sales data from the US.
    • Core retail sales m/m came in at 0.3% vs 0.5% expected and retail sales m/m came in at a disappointing 0.1% vs 0.4% expected. However we did see a better than expected preliminary UoM consumer sentiment figure from the US coming in at 100.8 vs 96.7 expected.
    • GBP/USD opened at 1.3105 and traded a high of 1.3143 (the highest rate since July) before coming off to close a third of a percent down on the day at 1.3065.
  • EUR/USD gave back Thursday’s gains on Friday coming off by 0.59% after opening at 1.1690 and closing at 1.1621.
  • UK Prime Minister Theresa May told the BBC that MPs will have two choices to back in regards a Brexit deal – her proposed deal or no deal at all. PM May was also critical of plans by Brexiteers to solve the Irish border issue.
  • Former foreign secretary Boris Johnson has criticised May’s exit strategy saying that her plan ‘would mean for the first time since 1066 our leaders were deliberately acquiescing in foreign rule’ and also said the the Government’s failure to solve the Irish border issue has led to a ‘constitutional abomination’. (BBC News)
  • GBP/AUD, GBP/NZD and GBP/JPY are trading 1.8264, 1.9955 and 146.64, respectively.
  • Eurozone CPI y/y has come in as expected at 2.0%.
  • At 1.30pm we expect foreign securities purchases from the Canada.
  • Alongside the Canadian data, we also expect the latest Empire State manufacturing index figure from the US at 1.30pm.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1242 +0.04
GBP/USD 1.3098 +0.25
EUR/USD 1.1651 +0.26
AUD/USD 0.7174 +0.32


Time (GMT) Region Data Release Forecast Previous
13:30 CAD Foreign Securities Purchases 4.35B 11.55B
13:30 USD Empire State Manufacturing Index 23.2 25.6