Newsletter – 21st June 2019

Morning Bulletin

Yesterday

  • The next Tory leader and next prime minister of the United Kingdom will be either Boris Johnson or Jeremy Hunt following two rounds of votes by Conservative MPs yesterday.
    • Sajid Javid was the first candidate eliminated in the first vote on Wednesday after only receiving 34 votes with Jeremy Hunt receiving 59, Michael Gove receiving 61 and Johnson 157.
    • In the second ballot (fifth overall) Michael Gove was eliminated after receiving 75 votes. Jeremy Hunt received 77 and Boris Johnson received 160.
    • There have been claims of tactical voting from Boris Johnson’s team to end Gove’s campaign but this has been denied.
    • Mr Hunt has promised Mr Johnson the “fight of his life” in the coming weeks. (BBC)
  • The Bank of England kept rates unchanged at 0.75% yesterday with the MPC voting unanimously in favour of no change.
  • UK retail sales came in as expected at -0.5%.
  • US Philly Fed manufacturing index came in weaker than expected 0.3 vs 10.6.
  • GBP/EUR could not maintain its upward momentum from Tuesday and Wednesday and posted a loss of -0.08% on Thursday. The market opened at 1.1257, traded a high of 1.1270, a low of 1.1208 and closed at 1.1246.
  • US President Donald Trump suggested that Iran shooting down a US drone was down to a human error. There is a dispute over whether the drone was in international or Iranian airspace.
Overnight
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.8345, 1.9320 and 136.63, respectively.
Today
  • This morning, flash manufacturing PMI and flash services PMI from the Eurozone came in at 47.8 and 53.4 respectively vs predictions of 48 and 53.
  • UK public sector net borrowing is due at 9.30am.
  • Canadian core retail sales m/m came is expected at 1.30pm.
  • We will also see US flash manufacturing PMI come in at 2.45pm.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1214 -0.28
GBP/USD 1.2677 -0.18
EUR/USD 1.1303 +0.11
AUD/USD 0.6918 -0.06

 

Time (GMT) Region Data Release Forecast Previous
09:30 GBP Public Sector Net Borrowing 3.3B 5.0B
13:30 CAD Core Retail Sales m/m 0.6% 1.7%
14:45 USD Flash Manufacturing PMI 50.5 50.5