Newsletter – 25th June 2018

Morning Bulletin


  • The Euro was one of Friday’s best performers in FX space buoyed by news that the Eurozone have agreed a debt-relief plan for Greece after the country’s bailout ends.
  • Having surged into the 1.1400’s Thursday afternoon, GBP/EUR was pegged back Friday, eventually closing the day at 1.1375, down 0.31% on the day.
  • EUR/USD closed the day up +0.39% at 1.1648.
  • There were also a raft of Flash PMI figures out of Europe’s largest economies Friday morning, culminating in the overall Eurozone figures:
    • Flash Manufacturing PMI 55.0 as expected
    • Flash Services PMI 55.0 (53.7 Exp)
  • Canadian data dominated Friday afternoon and it proved disappointing with Inflation and Retail Sales far worse than expected. CPI rose just 0.1% in May, that was short of the 0.4% expected. Whilst Core Retail Sales declined by 0.1% in April, against an expected rise of 0.5%.
  • Despite initially being sold off in FX space the Canadian Dollar did strengthen towards the end of the day to limit losses.
  • US President Trump has now threatened to impose a 20% tariff on all European car imports to the states following the EU’s retaliation to the US tariffs on European Steel and Aluminium.
  • US Flash Manufacturing PMI 54.6 (56.3 Exp)
  • US Flash Services PMI 56.5 (56.4 Exp)
Over The Weekend

  • Having secured 53% of the vote in the first round, Turkish President Erdogan has won a new five-year term in office. Whilst the Turkish economy has been strengthened under Erdogan and he has built up strong support through investing in healthcare, education and infrastructure, the opposition fear this will be yet another blow to democracy in Turkey.
  • UK MP’s will vote on whether to build a third runway at Heathrow Airport later today. Foreign Secretary Boris Johnson, who has been very vocal in his opposition to the move has come in for heavy criticism as he will miss the vote whilst promoting UK trade abroad.
  • German IFO Business Climate the only key print today and that comes at 9am this morning.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1376 +0.02
GBP/USD 1.3242 -0.12
EUR/USD 1.1639 -0.14
AUD/USD 0.7432 -0.10


Time (GMT) Region Data Release Forecast Previous
09.00 EUR German IFO Business Climate 101.9 102.2
15.00 USD New Home Sales 665K 662K