Newsletter – 23rd August 2017

Morning Bulletin


  • The Brexit-inspired negative sentiment that we have seen depress sterling in recent weeks continued yesterday as it lost value against both the euro and the US dollar.
  • With little in the way of high impact economic data to influence GBP/EUR, the negative sterling sentiment showed as GBP/EUR came off by 0.16% to close the day at 1.0897 after opening at 1.0914.
  • Of the data that we would consider to have a medium impact on the markets, we did see public sector net borrowing from the UK and ZEW economic sentiment from Germany. The former came in better than expected at -0.8B vs 0.0B expected and the latter came in worse than expected at 10.0 vs 14.8.
  • GBP/USD closed below the 1.2850 level which has been propping up the GBP/USD market for the last week or so despite President Trump vowing to ‘close down’ the US government in order to build the wall between the US and Mexico. He claimed the opposition democrats were being ‘obstructionist’ and in the same speech he also took a swipe at the media, accusing them of giving far right groups a platform to spread their message.
  • Canadian core retail sales m/m came in better than expected at 0.7% vs 0.0% however retail sale m/m came in weaker than estimates at 0.1% vs 0.2%.
  • There was no data of significance released overnight.
  • GBP/AUD is currently trading 1.6231, GBP/NZD is trading 1.7733 and GBP/JPY is trading 140.10.
  • This morning we have seen French flash manufacturing PMI come in at 55.8 vs 54.5 and French flash services PMI come in weaker at 55.5 vs 55.9 expected.
  • German flash manufacturing PMI came in at 59.4 vs 57.7 and German flash services PMI came in as expected at 53.4.
  • Eurozone flash manufacturing PMI came in at 57.4 vs 56.3 and flash services PMI came in at 54.9 vs 55.4.
  • Later today we have new home sales data from the US at 3pm.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.0858 -0.36
GBP/USD 1.2794 -0.21
EUR/USD 1.1783 -0.20
AUD/USD 0.7887 -0.28


Time (GMT) Region Data Release Forecast Previous
15:00 USD New home sales 611K 610K
15:30 USD Crude Oil Inventories -3.3M -8.9M