Newsletter – 21st November 2017

Morning Bulletin


  • Incredibly sparse on the economic data front yesterday.
  • Sterling was one of the better performers in FX space, underpinned by comments from Chancellor Hammond who suggested the Government was on the verge of unlocking Brexit negotitaions.
  • The Pound was further bolstered by suggestions that Theresa May will increase her offer on the divorce bill to the EU by a reported £20billion.
  • The Euro remained on the back-foot throughout the day’s trading following those shock reports of the collapse in talks to form a German coalition government, with the German Free Democrats (FDP) unexpectedly pulling out.
  • Speaking yesterday afternoon German President Steinmeier said that parties should not put the mandate back in voters hands (Fresh Elections) and have a clear responsibility to try and form a government in the near future.
  • Despite these comments from the President, it would appear Chancellor Merkel would prefer to go back to the polls rather than lead a minority Government, so a snap election could be on the cards.


  • Speaking yesterday evening, newly appointed Deputy Governor Dave Ramsden said he voted against (One of two against) a rate hike in the recent Bank of England meeting as he has not yet seen sufficient evidence of upward pressure on wages.
  • Fed Chair Janet Yellen has said she will stand down from the Central Bank when the incumbent Jerome Powell is sworn in.
  • The Aussie Dollar is on the back-foot this morning as the RBA minutes were released earlier this morning. They were dovish in nature, with the RBA playing down expectations of wage rises for Australian workers, whilst suggesting inflation would remain below their 2% target until the end of 2018.
  • US President Trump says the United States will designate North Korea a state sponsor of terrorism, joining the likes of Iran, Sudan and Syria. Additional sanctions will be placed upon North Korea today.


  • Focus this morning will be on the Bank of England, as the Governor Mark Carney and a number of his colleagues are due to testify on inflation and the economic outlook before the Parliamentary Treasury Committee.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1281 +0.02
GBP/USD 1.3247 +0.12
EUR/USD 1.1741 +0.08
AUD/USD 0.7540 -0.11


Time (GMT) Region Data Release Forecast Previous
09.05 AUD RBA Governor Lowe Speaks
09.30 GBP Public Sector Net Borrowing 6.6Bn 5.3Bn
10.00 GBP Inflation Report Hearings
11.00 GBP CBI Industrial Order Expectations 3 -2
13.30 CAD Wholesale Sales m/m 0.6% 0.5%
15.00 USD Existing Home Sales 5.42M 5.39M
TBC NZD GDT Price Index -3.5%
23.00 USD US Fed Chair Yellen Speaks