Newsletter – 19th September 2017

Morning Bulletin

Yesterday

  • On what was a quiet day’s trading Sterling lost ground during the afternoon session following comments from BOE Governor Mark Carney.
  • Despite reiterating largely what was said last week, markets appeared to view Carney’s comments as a slight backtrack, with the Governor stating any potential rate increases would be at a gradual pace and to a limited extent.
  • GBP/EUR dropped from around 1.1340 to 1.1290, whilst GBP/USD plummeted from around 1.3550 to 1.3466.
  • Following Boris Johnson’s much criticized Daily Telegraph Brexit article published over the weekend, a spokesman for UK PM Theresa May yesterday stated that the PM, her advisers and Mr Johnson were all united behind the Governments Brexit Plan.
  • Eurozone Inflation was in-line with expectations and remained at a 4-month high of 1.5%.
  • Canadian Foreign Securities Purchases 23.95Bn (4.46Bn Exp).
Overnight

  • Speaking yesterday evening Bank of Canada Deputy Gov Lane said that the BOC will be closely watching how the strengthening Canadian Economy responds to higher interest rates and a stronger Canadian Dollar.
  • According to Candian PM Justin Trudeau a Post-Brexit trade deal with the UK could be even better than their current CETA agreement with the EU.
  • Australia House Price Index q/q 1.9% (1.2% Exp)
  • New Zealand Westpac Consumer Sentiment 112.4 (113.4 Prior)
Today
  • Eurozone Current Account and German Consumer Confidence are the only prints this morning.
  • Raft of data then due for release out of North America at 1.30pm.
  • As always look out for the NZ Global Dairy Trade figure where NZ Dollar is concerned.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1285 -0.05
GBP/USD 1.3536 +0.31
EUR/USD 1.1993 +0.37
AUD/USD 0.7983 +0.32

 

Time (GMT) Region Data Release Forecast Previous
09.00 EUR Eurozone Current Account 22.3Bn 21.2Bn
10.00 EUR German ZEW Economic Sentiment 12.3 10.0
13.30 CAD Manufacturing Sales m/m -1.7% -1.8%
13.30 USD Building Permits 1.22M 1.23M
13.30 USD Current Account -115.0Bn -117.0Bn
13.30 USD Import Prices m/m 0.4% 0.1%
TBC NZD GDT Price Index 0.3%