Newsletter – 24th July 2017

Morning Bulletin

Friday

  • The US dollar index fell for the sixth time in seven days on Friday as investors become less confident in President Trump’s ability to implement any meaningful economic reform.
  • His administration is becoming increasingly embattled with the New York Times reporting that White House press secretary Sean Spicer resigned telling Trump that he ‘vehemently disagreed’ with the appointment of Anthony Scaramucci as communications director.
  • EUR/USD closed on Friday at 1.1663 after reaching two-year highs of 1.1682 –  representing its highest closing rate since January 2015.
  • GBP/USD opened at 1.2972 and closed up on the day at 1.2993 therefore managing to halt a 4-day series of losses.
  • There was little movement in the GBP/EUR market with market closing 11 points down from the open. Brexit negotiations continue to weigh on the pound and euro demand is high following heightened expectations of the ECB starting a QE tapering toward the end of the year.
  • It was a relatively quiet day on the economic data front but we did see public sector net borrowing from the UK miss expectations coming in at 6.3B vs 4.3B.
  • Canadian CPI m/m came in as expected at -0.1% and core retail sales m/m fell short at -0.1% vs 0.0% expected.
Overnight
  • GBP/AUD gained on Friday three quarters of a percent on Friday trading as high as 1.6462 before closing at 1.6417.
  • GBP/NZD is currently trading 1.7509 and GBP/JPY is at 144.22.
Today
  • We have seen a positive start from sterling this morning with the GBP/EUR and GBP/USD markets having gained 0.27% and 0.12%, respectively.
  • There has been generally weaker-than-expected data from Europe with flash manufacturing PMI and flash services PMI from Germany missing expectations. French flash manufacturing PMI beat estimates but flash services PMI fell short at 55.9 vs 56.6.
  • The Eurozone figure for manufacturing missed expectations at 56.8 vs 57.3 and services came in as expected at 55.4.
  • We have wholesale sales m/m from Canada at 1.30pm and then existing home sales from the US at 3pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1168 +0.27
GBP/USD 1.3007 +0.11
EUR/USD 1.1645 -0.15
AUD/USD 0.7948 +0.45

 

Time (GMT) Region Data Release Forecast Previous
09:00 CAD Wholesale Sales m/m 0.5% 1.0%
15:00 USD Existing Home Sales 5.59M 5.62M