Newsletter – 24th April 2018

Morning Bulletin

Yesterday

  • GBP/EUR posted the first day of gains in a week yesterday –  the market opened at 1.1395 and traded as high as 1.1435 before closing at 1.1415.
  • Flash manufacturing PMI from the Eurozone came in slightly softer than expected at 56.0 vs 56.6 and flash services PMI came in as expected at 55.0 vs 54.8.
  • However sterling lost more ground on the US dollar with GBP/USD opening at 1.3999 closing at 1.3939.
  • US existing home sales came in slightly stronger than expected at 5.6m vs 5.55m.
  • The Government’s key EU Withdrawal Bill suffered another defeat in the House of Lords yesterday with peers voting 316 to 245 in favour of a proposal to keep the EU Charter of Fundamental Rights in force after Brexit. It is the third defeat for the government’s flagship Brexit legislation after last week’s votes on the customs union and changes from EU to UK law. (BBC News).
  • US Press Secretary Sarah Sanders said in a press briefing yesterday that China has taken a more active role in pressuring North Korea over recent issues and reiterated that the President’s ultimate goal is to denuclearize the Korean peninsular.
Overnight
  • Overnight we saw Australian CPI q/q come in at 0.4% vs 0.5% and trimmed mean CPI q/q come in as expected at 0.5%.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.8324, 1.9589 and 151.65, respectively.
Today
  • This morning German Ifo business climate came in at 102.1 vs 102.7 expected.
  • GBP/EUR has risen by 0.1% this morning to trade 1.1430 at the time of writing and GBP/USD is ever so slightly down at 1.3932.
  • We have a relatively quiet day ahead but we do have public sector net borrowing from the UK at 9.30 and CB consumer confidence from the US at 3pm.
  • It is a bank holiday in the New Zealand and Australia today.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1428 +0.11
GBP/USD 1.3933 -0.05
EUR/USD 1.2191 -0.14
AUD/USD 0.7603 -0.02

 

Time (GMT) Region Data Release Forecast Previous
09:30 GBP Public Sector New Borrowing 1.1B -0.03B
15:00 USD CB Consumer Confidence 126.0 127.7
All Day NZD Bank Holiday
All Day AUD Bank Holiday