Newsletter – 23rd March 2018

Morning Bulletin


  • The Bank of England kept rates unchanged at 0.5% as expected yesterday however the Monetary Policy Committee voted 7-2 in favour of keeping rates unchanged.
  • It was expected to be 9-0 in favour of keeping rates unchanged so the chances of a May rate increase rose greatly as McCafferty and Saunders said that there was widespread evidence that spare capacity in the economy was largely used up and that pay growth was on the increase, posing an upside risk to inflation.
  • Sterling rallied sharply on the release of the MPC votes and reached a high of 1.1525 against the euro and 1.4216 against the US dollar.
  • Despite the initial strength, GBP/EUR did pull back to close only slightly higher on the day. The market opened at 1.1454 and closed at 1.1459.
  • GBP/USD printed a loss of 0.3% on the day closing at 1.4096 after opening at 1.4139.
  • President Donald Trump set in motion tariffs on Chinese imports yesterday and accused the Chinese of high-tech thievery. China has threatened retaliation but Trump has said the US will emerge much stronger and much richer.
  • US unemployment claims came every so slightly softer than expected at 229K vs 225K.


  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.8274, 1.9480 and 149.99.


  • Very little data to be released this morning. 
  • At 12.30pm with have inflation and retail sales data from Canada.
  • At the same time we will see core durable goods orders m/m from the US.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1430 -0.25
GBP/USD 1.4102 +0.05
EUR/USD 1.2337 +0.29
AUD/USD 0.7716 +0.30


Time (GMT) Region Data Release Forecast Previous
12:30 CAD CPI m/m 0.4% 0.7%
12:30 CAD Core Retail Sales m/m 0.9% -1.8%
12:30 CAD Common CPI y/y 1.8%
12:30 CAD Median CPI y/y 1.9%
12:30 CAD Retail Sales m/m 1.1% -0.8%
12:30 CAD Trimmed CPY y/y 1.8%
12:30 USD Core Durable Goods Orders m/m 0.5% -0.3%
12:30 USD Durable Goods Orders m/m 1.6% -3.6%