Newsletter – 24th August 2017

Morning Bulletin


  • Once again yesterday economic data was limited, with no high impact numbers set for release.
  • Despite a fairly muted day’s trading in FX space, Sterling was once again one of the most affected by the quiet conditions. GBP/EUR slipped to a fresh 2017 low of 1.0822, whilst GBP/USD spend a good amount of the day below the 1.2800 handle.
  • There were a raft of Manufacturing and Services PMI prints released yesterday morning out of some of the bigger European member states, all in all they were pretty solid and culminated in the overall Eurozone figures for August:
    • Eurozone Manufacturing PMI 57.4 (56.3 Exp)
    • Eurozone Services PMI 54.9 (55.4 Exp)
  • Shortly after these numbers ECB President Mario Draghi was speaking at a meeting in Germany. Some were hoping for comments around the ECB’s Monetary Policy, however the speech focused on the use of research in monetary policy decisions.
  • According to one of Mr Draghi’s counterparts at the ECB, Jens Weidmann, the Central Bank should quickly end its asset buying by next year. He also stated that Inflation would gradually rise and that the ECB’s policy would remain expansionary for years to come.
  • South African CPI during the month of July dropped to a 22-month low. Expecting a rise of 5.1%, the actual print saw CPI climb by just 4.6% year on year.
  • Once again US Fed member Kaplan reiterated that he does not want to raise rates again this year, and that he would be patient and await further information.
  • New Zealand Trade Balance 85M (-200M Exp)
  • UK GDP data will be in focus this morning at 9.30am.
  • US Unemployment Claims is the key print this afternoon due at 1.30pm.
  • Worth noting the Jackson Hole Symposium kicks off today, although the key speakers, including Fed Chair Yellen and ECB President Draghi, are due to speak tomorrow. The Economic symposium is attended by Central Bankers and Finance Ministers from across the globe.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.0852 +0.13
GBP/USD 1.2798 0.00
EUR/USD 1.1793 -0.11
AUD/USD 0.7880 -0.29


Time (GMT) Region Data Release Forecast Previous
09.30 GBP Second Estimate GDP q/q 0.3% 0.3%
09.30 GBP Prelim Business Investment q/q 0.2% 0.6%
11.00 GBP CBI Realized Sales 15 22
13.30 USD Unemployment Claims 237K 232K
14.00 EUR Belgian NBB Business Climate -1.6 -1.5
15.00 USD Existing Home Sales 5.55M 5.52M
All Day ALL Jackson Hole Symposium