Newsletter – 24th October 2017

Morning Bulletin

Yesterday

  • Overall yesterday proved a relatively quiet day as expected, with a distinct lack of data released.
  • Sterling started the morning on the front-foot in FX space, making solid gains by around 9am London time against most of it’s major currency counterparts. The Pound did give some of those gains back by Midday before recovering for a strong afternoon and close to the day.
  • The brief wobble could have been down to a disappointing CBI Industrial Orders print with the survey showing orders over the next 3-months expected to be down-2. A positive figure of 9 was forecast.
  • EU Commission President Juncker rubbished a report that UK PM May had ‘begged’ him for help on Brexit at a private dinner.
  • Addressing Parliament, UK PM Theresa May said that important progress had been made on the UK’s new relationship with the EU and that the two parties (UK & EU) were united on the key principles on any deal surrounding the rights of EU citizens.
  • Another poor economic print saw the Canadian Dollar sold off in FX space yesterday afternoon, this time it was Canadian Wholesale Sales m/m 0.5% (1.1% Exp).
  • The Bank of England’s Dep Gov Cunliffe suggested that interest rates would need to rise over a 3-year period, albeit at a slower pace than pre-crisis. He again appeared to raise doubts as to whether a rate hike would be appropriate in November’s meeting, noting that the UK economy has clearly slowed this year.
Overnight

  • US President Trump has said he is very, very close to deciding who will be the next US Federal Reserve Chair.
  • Japan Flash Manufacturing PMI 52.5 (53.1 Exp)
  • German Chancellor Merkel is apparently furious about those leaks from the private dinner between UK PM May and the EU’s Juncker.
  • French Flash Manufacturing PMI 56.7 (56.2 Exp)
  • French Flash Services PMI 57.4 (57.0 Exp)
  • German Flash Manufacturing PMI 60.5 (60.1 Exp)
  • German Flash Services PMI 55.2 (55.5 Exp)
Today
  • The quiet start to the week looks set to continue with a lack of data to be released today.
  • Eurozone PMI readings due at 9am this morning appear to be as good as it gets.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1211 -0.19
GBP/USD 1.3188 -0.07
EUR/USD 1.1763 +0.12
AUD/USD 0.7782 -0.29

 

Time (GMT) Region Data Release Forecast Previous
09.00 EUR Eurozone Flash Manufacturing PMI 57.9 58.1
09.00 EUR Eurozone Flash Services PMI 55.7 55.8
14.00 EUR Belgian NBB Business Climate -2.9 -3.5
14.45 USD Flash Manufacturing PMI 53.3 53.1
14.45 USD Flash Services PMI 55.2 55.3
15.00 USD Richmond Manufacturing Index 17 19