Newsletter – 22nd December 2017

Morning Bulletin


  • The UK’s Public Sector Net Borrowing figure was largely in-line with expectations in November at 8.1Bn (8.3Bn Exp). That represented the lowest Government borrowing figure during the month of November since 2007.
  • Key Canadian data impressed yesterday afternoon with both Inflation and Retail Sales beating expectations. Inflation, in the form of CPI, rose by 0.3% in November against an expected 0.2% rise. Whilst Core Retail Sales smashed expectations with growth of 0.8% during October against an expected rise of just 0.4%.
  • The Canadian Dollar rallied hard in FX space off the back of this data. Prior to the data GBP/CAD was trading around the 1.7160 level but dropped aggressively to close the day down at 1.7000.
  • Final Third Quarter GDP was the key US print yesterday afternoon and it fell just short of expectations with an annualized rate of 3.2%. Growth of 3.3% had been forecast, but the US economy is still very much on a strong run.
  • According to newspaper reports, the EU are preparing to offer the UK a ‘Canada Style’ trade deal by the early summer, should the UK not have clarified their demands and position by then.
  • The United Nations voted overwhelmingly to call upon the United States to withdraw its ‘outrageous’ and ‘provocative’ decision to recognise Jerusalem as the Capital of Israel. 128 States voted in favour of the motion, with 35 voting against.
  • The US Congress has passed a short-term spending Bill overnight to avoid the US Government going into shutdown. The Stopgap bill provides Government funding up to the 19th January.
  • German GfK Consumer Climate 10.8 (10.7 Exp)
  • French Consumer Spending m/m 2.2% (1.4% Exp)
  • Swiss KOF Economic Barometer 111.3 (110.3 Exp)
  • Key UK data this morning with Current Account and Final GDP data due at 9.30am.
  • This afternoon Canadian GDP and US Durable Goods Orders are the key prints.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1273 +0.02
GBP/USD 1.3369 -0.12
EUR/USD 1.1855 -0.16
AUD/USD 0.7714 +0.19


Time (GMT) Region Data Release Forecast Previous
09.30 GBP Current Account -21.5Bn -23.3Bn
09.30 GBP Final GDP q/q 0.4% 0.4%
13.30 CAD GDP m/m 0.2% 0.2%
13.30 USD Core Durable Goods Orders m/m 0.5% 0.9%
13.30 USD Personal Spending m/m 0.5% 0.3%
15.00 USD New Home Sales 654K 685K
15.00 USD Revised Consumer Sentiment 97.1 96.8