Newsletter – 24th January 2018


  • The US dollar sell-off continued yesterday with both GBP/USD and EUR/USD posting positive days.
  • GBP/USD closed at 1.3995 after opening at 1.3984 and EUR/USD closed at 1.2298 after opening at 1.2261.
  • GBP/EUR pulled back a little yesterday following Monday’s stellar performance with a 20 pip dip. We opened at 1.1402 and closed 1.1382.
  • UK public sector net borrowing came in much better than expected at 1.0B vs 4.2B expected and this was followed by firm data from the Eurozone with German ZEW economic sentiment coming in at 20.4 vs 17.8.
  • EU Brexit Minister Barnier said the UK still has to come up with a solution to Ireland while Ireland PM Varadkar said that a two-year transition period is being considered.
  • AUD/USD is trading at its highest level since September at 0.8040 and USD/NZD is trading its lowest level since September at 1.3533.
  • US Fed Govenor Nominee Goodfriend said that it is critically important that in order to get monetary stimulus to the economy, long-run inflation must be anchored.
  • GBP/USD is already up by 0.65% this morning and EUR/USD is up by over a third of a percent with dollar weakness showing no immediate sign of slowing.
  • Eurozone flash manufacturing PMI came in at 59.6 vs 60.4 expected and flash services PMI came in at 57.6 vs 56.5 expected.
  • UK average earnings index 3m/y is expected at 9.30am along with claimant count change and unemployment rate data.
  • This afternoon we expected to find out the latest existing home sales figure from the US and then later this evening we are expecting inflation data from New Zealand in the form of CPI q/q.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1409 +0.24
GBP/USD 1.4078 +0.59
EUR/USD 1.2340 +0.34
AUD/USD 0.8038 +0.51


Time (GMT) Region Data Release Forecast Previous
09:30 GBP Average Earnings Index 3m/y 2.5% 2.5%
09:30 GBP Claimant Count Change 2.3K 5.9K
09:30 GBP Unemployment Rate 4.3% 4.35
15:00 USD Existing Home Sales 5.72M 5.81M
21:45 NZD CPI q/q 0.4% 0.5%