Newsletter – 21 February 2017

Morning Bulletin

Yesterday

  • With nigh on no data due for release, yesterday was always likely to be a slow day.
  • Sterling was the main benefactor of the data free calendar, making solid gains against all of its major currency counterparts. Most notably climbing 0.5% on the day versus both the US Dollar and the Euro, to rates of 1.2467 and 1.1743 respectively.
  • Speaking yesterday UK Brexit Minister David Davies insisted the Government would trigger Article 50 by the 31st March.
  • Canadian Wholesale Sales m/m 0.7% (0.4% Exp).

Overnight

  • Minutes from the Reserve Bank of Australia’s most recent policy meeting revealed that the Central bank kept policy unchanged (Rates at 1.50%) as that would prove consistent with sustainable growth in the economy and would see inflation target achieved over time.
  • Japan Flash Manufacturing PMI 53.5 (52.1 Exp) – This was a 35 month high.
  • Swiss Trade Balance 4.73Bn (3.03Bn Exp).
  • Once again US Fed Member Harker reaffirmed his view that a rate hike could be on the table in their March meeting.

Today

  • Plenty of data due for release in the day ahead, not all necessarily key though.
  • Arguably the key event will be the Bank of England’s appearance before Parliament’s Treasury Select Committee. The BOE members will testify on inflation and the current economic outlook. This will begin around 10am.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1754 +0.09
GBP/USD 1.2421 -0.32
EUR/USD 1.0566 -0.41
AUD/USD 0.7659 -0.35

 

ECONOMIC CALENDAR
Current at time of distribution
Time (GMT) Region Data Release Forecast Previous
09.00 EUR Eurozone Flash Manufacturing PMI 55.0 55.2
09.00 EUR Eurozone Services PMI 53.7 53.7
09.30 GBP Public Sector Net Borrowing -14.4Bn 6.4Bn
10.00 GBP BOE Inflation Report Hearings
13.50 USD Fed Member Kashkari Speaks
TBC NZD GDT Price Index 1.3%
14.45 USD Flash Manufacturing PMI 54.7 55.0
14.45 USD Flash Services PMI 55.8 55.6
15.30 AUD CB Leading Index m/m 0.5%
17.00 USD FOMC Member Harker Speaks