Newsletter – 21st December 2018

Morning Bulletin

Yesterday

  • GBP/EUR opened at 1.1080, traded a high of 1.1101, a low of 1.1045 and closed at 1.1060 – a 0.18% fall on the day.
  • GBP/EUR opened at 1.2611, traded a high of 1.2706 and a low of 1.2608 before closing at 1.2654 representing a 0.35% increase on Thursday.
  • UK retail sales m/m came in far stronger than expected at 1.4% vs 0.3%.
  • The Bank of England kept interest rates unchanged yesterday at 0.75% with the MPC voting unanimously in favour of the unchanged rate.
  • The BoE cut growth forecasts yesterday stating that Brexit uncertainty has intensified considerably over the past month and this has hit the UK economy.
  • Financial Secretary to the Treasury Mel Stride warned UK business that ‘there is a call to action now’ to prepare for a no-deal Brexit although he also said the event was unlikely.
  • Members of the cabinet Andrea Leadsom and Amber Rudd set out rival alternative plans should Theresa May fail to get her plan through Parliament. Ms Rudd said that a second referendum would be plausible but Mrs Leadsom said it would be ‘unacceptable’ and argued instead for a ‘managed no-deal’.
  • US Defence Secretary James Mattis has resigned after opposing President Trump’s decision to withdraw US troops from Syria.
Overnight
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.7874, 1.8820 and 140.73.
Today
  • This morning the UK current account came in weaker than expected at -26.5B vs -21.7B. Final GDP came in as expected at 0.6% and public sector net borrowing came in at 6.3B vs 7.0B.
  • At 1.30 we have growth and retail sales data from Canada alongside growth and durable goods orders from the US.
  • Gatwick airport has reopened this morning its closure yesterday due to a drone flying within the airports airspace causing some 700 flights to be cancelled.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1091 +0.28
GBP/USD 1.2664 +0.08
EUR/USD 1.1417 -0.24
AUD/USD 0.7082 -0.35
Time (GMT) Region Data Release Forecast Previous
13:30 CAD Core retail sales m/m 0.2% 0.1%
13:30 CAD GDP m/m 0.2% -0.1%
13:30 CAD Retail Sales m/m 0.4% 0.2%
13:30 USD Core Durable Goods Orders m/m 0.3% 0.2%
13:30 USD Final GDP q/q 3.5% 3.5%
13:30 USD Durable Goods Order m/m 1.6% -4.3%