Newsletter – 21st June 2017

Morning Bulletin

Yesterday

  • We saw sterling weaken against the other majors yesterday as Bank of England Governor Mark Carney stated that “now is not the right time for an interest rate rise”. He cited the facts that wage growth is falling and that the impact of Brexit on the economy is unclear.
  • Sterling opened the day at 1.1419 against the euro and dropped by 0.71% to close the day at 1.1338.
  • GBP/USD opened at 1.2735 and fell by 0.85% to close the day at 1.2626.
  • Chancellor Philip Hammond called for smooth Brexit negotiations to avoid a ‘cliff edge’ for UK businesses.
  • DUP sources warned Conservatives not to take them for granted as talks continue to form a government.
  • We saw Canadian wholesale sales m/m come in better than expected at 1.0% vs 0.5% and current account data from the USA come in better than expected at -117B vs -124B.
  • There was a relatively rare occurrence yesterday as both sterling and the FTSE fell. Typically, there is an inverse relationship between sterling and the FTSE.
Overnight
  • Sterling also weakened against the Aussie and Kiwi dollar, currently trading at 1.6671 and 1.7423, respectively.
  • A suspected suicide bomber was shot dead at Brussels railway station after he detonated a small device. No members of the public were injured.
Today
  • Ahead of the Queen’s speech, which takes places today despite no agreement between the Conservatives and the DUP, PM Theresa May has promised to work with “humility and resolve”. The Queen’s speech is likely to be dominated by Brexit.
  • At 9.30am we will see public sector net borrowing from the UK before MPC member Haldane speaks at midday.
  • In the afternoon we have existing home sales from the US at 3pm.
  • Later this evening will we see interest rates set in New Zealand and the accompanying  rate statement released at 10pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1322 -0.14
GBP/USD 1.2604 -0.17
EUR/USD 1.1130 -0.03
AUD/USD 0.7558 -0.27

 

Time (GMT) Region Data Release Forecast Previous
09:30 GBP Public Sector New Borrowing 7.3B 9.6B
12:00 GBP MPC Member Haldane Speaks
15:00 USD Existing Home Sales 5.54M 5.57M
15:30 USD Crude Oil Inventories -1.2M -1.7M
22:00 NZD Official Cash Rate 1.75% 1.75%
22:00 NZD RBNZ Rate Statement