Newsletter – 25th April 2018

Morning Bulletin


  • The UK Government had some good news at last yesterday, as Chancellor Phillip Hammond managed to hit his target for cutting the UK’s budget deficit. The deficit stood at 42.6 Billion pounds for the 12 months ending March 2018, that was lower than the 45.2 Billion forecast by the UK’s budget watchdog just last month and the lowest figure in 11 years. The Chancellor’s ultimate goal is of course to eradicate the budget deficit altogether by the middle of the next decade.
  • Sterling did find some strength from the better than expected borrowing figure but gains on the day were limited.
  • The German Ifo Business Climate reading fell once again in April to 102.1. That was just shy of the expected 102.7 but was the 4th consecutive month of decline. International trade tensions were said to have weighed on business confidence.
  • The Times reported yesterday that EU officials are saying the UK’s plan for the Irish border is flawed and that there are serious doubts a solution will be agreed by June.
  • US Consumer Confidence surged in April to 128.7, that was far better than the 126.0 expected and up from last months reading of 127.0.
  • US New Home Sales 694K (625K Exp)
  • The New Zealand Dollar remained one of the weakest performers in FX space yesterday, even the struggling Pound traded to a 2018 high of 1.9652 versus the Kiwi Dollar.



  • Japan All Industries Activity m/m 0.4% (0.6% Exp)
  • According to President Trump NAFTA talks are going ‘nicely’. Similarly Canadian Foreign Minister Freeland said negotiators were making good progress.
  • Staying on Trump, in a complete U-Turn from his ‘Rocket-Man’ outbursts, President Trump said overnight that Kim Jong-un was very open and very honourable and that the North Korean regime would like a summit as soon as possible.
  • No data of note set for release today.
  • Worth noting it is an Italian Bank Holiday today.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1434 +0.07
GBP/USD 1.3952 -0.16
EUR/USD 1.2201 -0.24
AUD/USD 0.7576 -0.36


Time (GMT) Region Data Release Forecast Previous
09.00 CHF Credit Suisse Economic Expectations 16.7
14.00 CNY CB Leading Index m/m 1.1%
21.15 CAD BOC Gov Poloz Speaks