- There were some substantial moves in FX markets yesterday, with Sterling once again one of the main beneficiaries, whilst the US Dollar slumped even further.
- The Pound gained +0.66% on the Euro, closing the day around a fresh 7-week high of 1.1458.
- Even more impressive the Pound rallied as high as 1.4241 against the US Dollar, before closing the day just shy of 1.4200, up some +1.40% on the day.
- The Pound’s performance was underpinned by some solid UK data releases in the morning:
- Average Earnings Index 3m/y 2.5% as expected
- Unemployment Rate 4.3% as expected
- Speaking yesterday US Commerce Secretary Ross said there was a good chance that the renegotiation of NAFTA would be successful.
- Speaking yesterday, in a clear message to President Trump, German Chancellor Angela Merkel argued that protectionism was not the answer to the world’s problems. She also said that Europe wants to have a good relationship with the UK in the future, but there could be no compromise on the EU’s core principles.
- Other Data of note:
- US Flash Manufacturing PMI 55.5 (55.2 Exp)
- US Flash Services PMI 53.3 (54.5 Exp)
- US Existing Home Sales 5.57M (5.72M)
- The Kiwi Dollar has been hammered overnight following much weaker than expected Inflation data, with a CPI print of0.1% in the final quarter of 2017. That was down on an expected 0.4% rise.
- GBP/NZD rallied from 1.9150 to 1.9400 in the immediate aftermath, whilst similarly EUR/NZD rallied from 1.6700 to 1.6900.
- The US Dollar remained weak overnight following comments from US Treasury Secretary Steven Mnuchin who said a weaker Dollar could be good for Trade and the US economy.
- German Gfk Consumer Climate 11.0 (10.8 Exp)
- Spanish Unemployment Rate 16.6% (16.1% Exp)
- All eyes will be on the ECB this afternoon, and whilst rates will almost certainly be held at 0.00% it is the accompanying statement and press conference that will be scrutinised.
- The other data of note this afternoon will be Canadian Retail Sales and US Unemployment Claims, both due at 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.00||EUR||German IFO Business Climate||117.1||117.2|
|11.00||GBP||CBI Realized Sales||11||20|
|12.45||EUR||ECB Minimum Bid Rate||0.00%||0.00%|
|13.30||EUR||ECB Press Conference|
|13.30||CAD||Core Retail Sales m/m||0.9%||0.8%|
|13.30||USD||Goods Trade Balance||-68.6Bn||-70.0Bn|
|14.00||EUR||Belgian NBB Business Climate||0.4||0.1|
|15.00||USD||New Home Sales||676K||733K|