- There wasn’t a great deal of data released yesterday however there was once again plenty of movement in FX markets, particularly where the ‘Commodity’ currencies were concerned.
- These currencies typically include the Kiwi, Aussie and Canadian Dollar and all three were subject to severe weakening over the course of yesterday’s trading.
- The Canadian Dollar was under pressure following President Trump’s plans to place a 20% tariff on softwood lumber exported to the US by Canada. President Trump didn’t stop at the Lumber trade either, having tweeted the following: “Canada has made business for our dairy farmers in Wisconsin and other border states very difficult. We will not stand for this. Watch!”
- Subsequently the Canadian Dollar traded at its worst levels of the year versus Sterling (1.7491), The Euro (1.4907) and the US Dollar (1.3614).
- The UK’s budget deficit fell to its lowest level since the financial crisis yesterday morning. It was reported that the UK Government borrowed £52 billion over the last financial year, down £20 billion from the previous year.
- Mixed data out of the United States yesterday afternoon:
- CB Consumer Confidence 120.3 (123.7 Exp)
- New Home Sales 621K (590K Exp)
- Australian CPI q/q 0.5% (0.5% Exp)
- New Zealand Visitor Arrivals m/m 1.5%
- Japanese All Industries Activity m/m 0.7% (0.8% Exp)
- Incredibly sparse data calendar for the day ahead.
- The only data of note will be Canadian Retail Sales due for release at 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.00||CHF||Credit Suisse Economic Expectations||29.6|
|10.05||EUR||ECB LTRO Result|
|10.30||ZAR||South Africa PPI m/m||0.6%|
|13.30||CAD||Core Retail Sales m/m||-0.2%||1.7%|
|13.30||CAD||Retail Sales m/m||0.0%||2.2%|
|14.15||GBP||Chancellor Hammond Speaks on Budget|