Newsletter – 23 February 2017

Morning Bulletin

Yesterday

  • The euro strengthened against both the US dollar and sterling yesterday with GBP/EUR closing at 1.1788 after opening at 1.1834 and EUR/USD closing at 1.0557 after opening at 1.0529.
  • German Ifo Business Climate came in slightly better than expected at 111.0 vs 1.09.60.
  • Following that we saw the second estimate of GDP q/q from the UK come in better than expected at 0.7% vs 0.6% expected.
  • Canadian Core retail sales m/m came in slighty worse than expected at -0.3% vs 0.8% and US existing home sales beat expectations at 5.69M vs 5.55M.
  • The FOMC meeting minutes were released last night in which Federal Reserve officals expressed confidence than they can raise interest rates gradually, while a hike ‘fairly soon’ might be appropriate to avoid the risk of an overheated economy. (Bloomberg)
Overnight
  • Private Capital Expenditure q/q from Australia came in worse-than-expected at -2.1% vs -0.4%.
Today
  • Sterling is up over 10% against all of the other major currencies this morning.
  • We are expecting US unemployment claims data at 1.30pm to be followed by FOMC Member Kaplan speaking publicly at 6pm.
  • Gov Lowe of the RBA will also be speaking publicly at 10.30pm.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1817 +0.25%
GBP/USD 1.2471 +0.19%
EUR/USD 1.0552 -0.04%
AUD/USD 0.7690 -0.15%

 

ECONOMIC CALENDAR
Current at time of distribution
Time (GMT) Region Data Release Forecast Previous
13:30 USA Unemployment Claims 242K 239K
18:00 USA FOMC Member Kaplan Speaks
22:30 AUD RBA Gov Lower Speaks