Newsletter – 22nd August 2019

Morning Bulletin

Yesterday

  • GBP/EUR fell by 0.22% yesterday after opening at 1.0960, trading a high of 1.0969, a low of 1.0915 and closing at 1.0937.
  • GBP/USD opened at 1.2164, traded a high of 1.2174, a low of 1.2112 and closed at 1.2117 representing a fall of 0.38%.
  • UK Public sector net borrowing came in at -2.0B when the consensus was that the figure would be close to -3.7B.
  • Canadian CPI m/m came in at 0.5% vs 0.1% expected.
    • Common CPI y/y came in at 1.9% vs 1.8% expected.
    • Median CPI y/y came in as expected at 2.1%.
    • Trimmed CPI y/y came in 2.1% vs 2.0%.
  • Emmanuel Macron said that reopening Brexit negotiations is “not an option” and German Chancellor Angela Merkel said the onus is on the UK to find a workable plan.
  • The minister in charge of no-deal planning Michael Gove said yesterday that the UK government will do all it can to ensure traffic flows through ports after Brexit.
  • The ONS said yesterday that an error has meant the level of migration from the EU to the UK has been underestimated from 2004 to the present day.
Overnight
  • GBP/AUD, GBP/NZD and GPY/JPY are currently trading at 1.7948, 1.9024 and 129.27, expected.
  • FOMC minutes released last night showed that a couple of participants preferred a 50 basis points rate cut in July rather than 25bp to address low inflation.
Today
  • Eurozone flash services PMI came in at 53.3 vs 52.5 expected and flash manufacturing PMI came in at 51.0 vs 49.5.
  • Later today we have flash manufacturing from the US and retail sales q/q from New Zealand.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.0936 -0.01
GBP/USD 1.2144 +0.22
EUR/USD 1.1102 +0.17
AUD/USD 0.6765 -0.23

 

Time (GMT) Region Data Release Forecast Previous
14:45 USD Flash manufacturing PMI 50.5 50.4
23:45 NZD Retail sales q/q 0.1% 0.7%
23:45 NZD Core retail sales q/q 0.2% 0.7%