Newsletter – 24th March 2017

Morning Bulletin

Yesterday

  • Sterling gained ground on the euro and US dollar yesterday as we had more better-than-expected data from the UK.
  • As we have mentioned in previous newsletters, UK data is being closely watched by investors as they try to get a better understanding of when the Bank of England will next hike interest rates.
  • UK retail sales m/m came in at 1.4% vs 0.4% expected and as a result we saw GBP/EUR and GBP/USD rally to the highest levels since mid/late February.
  • GBP/EUR closed the day up 0.42% after closing at 1.1608 and GBP/USD closed the day up a third of a percent after closing at 1.2520.
  • The increase in GBP/USD was helped along by weaker than expected unemployment claims from the US. The expected figure of 240K was missed with the official figure coming in at 258K.
  • US new home sales beat expectations at 592K vs 566K.
Overnight
  • New Zealand trade balance data came in at -18m when 160m was expected.
  • GBP/NZD rallied on the bank of this and is now trading around 1.7820 with the next significant level to the upside being at 1.79.
Today
  • This morning was saw PMI data released from Europe with French, German and Eurozone manufacturing and services PMI coming in firmer than expected.
  • We have CPI m/m from Canada m/m and US core durable goods orders m/m at 12.30pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1559 -0.40
GBP/USD 1.2481 -0.31
EUR/USD 1.0794 +0.09
AUD/USD 0.7620 -0.06

 

Time (GMT) Region Data Release Forecast Previous
12.00 USD FOMC Member Evans Speaks
12.30 CAD CPI m/m 0.2% 0.9%
12.30 CAD Common CPI y/y 1.3%
12.30 USD Core Durable Goods Orders m/m 0.5% 0.0%
12.30 USD Durable Goods Order m/m 1.1% 2.0%