Newsletter – 24th May 2018

Morning Bulletin

Yesterday

  • GBP/USD fell and closed below 1.34 for the first time since 22nd December 2017 due to US dollar strength and weaker than expected inflation figure from the UK.
  • UK CPI y/y came in at 2.4% vs 2.5% expected. PPI input m/m also came in softer at 0.4% vs 1.0% expected. RPI y/y came in as expected at 3.4%,
  • Prior to that we had a plethora of data from the Eurozone.
    • French flash manufacturing PMI came in at 55.1 vs 53.6 expected and flash services PMI came in at 54.3 vs 57.1.
    • German flash manufacturing PMI came in at 56.8 vs 57.9 and flash services PMI came in at 52.1 vs 53.1.
    • Eurozone flash manufacturing PMI came in at 55.5 vs 56.1 and flash services PMI came in at 53.9 vs 54.7 expected.
  • GBP/EUR closed 11 points higher than its opening rate at 1.1411 after trading a low of 1.1368 and a high of 1.1441.
  • The US dollar eased off following the FOMC meeting last night where the inflation was seen as dovish by the markets.
Overnight
  • New Zealand trade balance came in better than expected at 263M vs 200M.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.7720, 1.9375 and 147.07 expected.
Today
  • UK retail sales m/m came strong than expected at 1.6% vs 0.8%.
  • At 12.30pm we have ECB monetary policy meeting accounts from before employment and home sales data from the US.
  • Sterling has had a strong start to the day off the back of the better than expected retail sales data printing up half of a percent against the greenback.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1412 +0.01
GBP/USD 1.3396 +0.40
EUR/USD 1.1736 +0.35
AUD/USD 0.7563 +0.05

 

Time (GMT) Region Data Release Forecast Previous
12:30 EUR ECB Monetary Policy Meeting Accounts
13:30 USD Unemployment Claims 220K 222K
15:00 USD Existing Home Sales 5.56M 5.60M
15:35 USD FOMC Member Bostic Speaks
18:00 GBP BOE Gov Carney Speaks