Newsletter – 19th September 2018

Morning Bulletin

Yesterday

  • GBP/EUR opened at 1.1254 and traded a low of 1.1226 before rallying to close the day up just under a tenth of a percent at 1.1265.
  • GBP/USD closed down on the day with the actual implementation of US tariffs of Chinese imports having a rather muted effect on the market. Cable opened at 1.3157 and closed down 0.08% on the day at 1.3146.
  • EUR/USD opened at 1.1682 and traded a high of 1.1724 before closing at 1.1664.
  • EU chief negotiator Michel Barnier said that the EU is ready to improve its offer on the Irish border has he warned the ‘moment of truth’ was nearing for Brexit negotiations.
  • Canadian manufacturing sales m/m came roughly as expected at 0.9% vs 1.05 on Tuesday.
Overnight
  • New Zealand GDT price index came in at -1.3% and the current account figure came in at -1.62B which is worse than the -1.23B expected.
  • Bank of Japan kept their policy rate at -0.10% overnight as expected.
  • GBP/AUD, GBP/NZD and GBP/JPY came in at 1.8212, 1.9970 and 148.28.
Today
  • The UK inflation rate unexpectedly came in at 2.7% this morning – the highest level in 6 months. A rate of 2.4% was expected. A rise a prices of recreational goods, transport and clothing were behind the increase.
  • UK PM May is due to make an appeal to EU leaders this evening – she is expected to tell them Brussels needs to evolve its position as the UK has done.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1269 +0.04
GBP/USD 1.3187 +0.31
EUR/USD 1.1701 +0.32
AUD/USD 0.7248 +0.40

 

Time (GMT) Region Data Release Forecast Previous
13:30 USD Building Permits 1.31M 1.31M
13:30 USD Housing Starts 1.24M 1.17M
14:00 EUR Draghi Speaks
15:30 USD Crude Oil Inventories -2.7M -5.3M