Newsletter – 20th December 2017

Morning Bulletin


  • The only key print yesterday morning was the German IFO Business Climate, with the actual print of 117.2 falling just shy of the expected 117.6. The reading remains near all-time highs, however the slight fall has been attributed to the current political deadlock in Germany.
  • The afternoon was dominated by data releases out of the US and they all beat estimates:
    • Building Permits 1.30M (1.27M Exp)
    • Current Account -101Bn (-116Bn Exp)
    • Housing Starts 1.30M (1.25M Exp)
  • There was a sharp drop in the New Zealand Global Dairy Trade Index yesterday afternoon, with prices down -3.9%from a fortnight before.
  • According to a spokesman, UK PM Theresa May and US President Trump shared a phone call today in which they both agreed upon the importance of a swift UK-US trade deal post-Brexit.

  • President Trump is edging closer to his first major legislative triumph, as the Republican Tax Bill has now been approved by the US House of Representatives.
  • The Bank of England has announced they plan to allow European Banks that offer wholesale finance to operate as normal under existing rules, even in the event of a ‘No Deal’. This would allow EU banks operating branches in the UK to continue without having to create subsidiaries, which could have potentially cost billions.
  • New Zealand Current Account -4.68Bn (-4.22Bn Exp)
  • New Zealand Trade Balance -1193Bn (-495Bn Exp)
  • Japan All Industries Activity m/m 0.3% (0.4% Exp)
  • German PPI m/m 0.1% (0.2% Exp)
  • Eurozone Current Account 30.8Bn (33.4Bn Exp)
  • Looking like a fairly quiet day on the data front.
  • Bank of England Governor Mark Carney is due to speak before the Treasury Select Committee at 1.15pm.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1321 +0.16
GBP/USD 1.3403 +0.15
EUR/USD 1.1840 +0.02
AUD/USD 0.7675 +0.18


Time (GMT) Region Data Release Forecast Previous
11.00 GBP CBI Realised Sales 21 26
13.00 EUR German Buba President Weidmann speaks
13.15 GBP BOE Gov Carney Speaks
13.30 CAD Wholesale Sales m/m 0.5% -1.2%
15.00 USD Existing Home Sales 5.53M 5.48M