Newsletter – 26th June 2018

Morning Bulletin

Yesterday

  • Yesterday proved a very slow news day as expected with no key data chalked up for release.
  • The Euro was the main beneficiary of the slow news day, advancing +0.25% and +0.30% against the Pound and US Dollar respectively.
  • The ‘commodity currencies’ sustained the biggest losses on the day, with the Aussie, Kiwi and Canadian Dollars all down against their major counterparts, and once again the Euro in particular made the greatest gains against the aforementioned currencies.
  • German IFO Business Climate 101.8 (101.9 Exp)
  • US New Home Sales 689K (665K Exp)
  • According to the WSJ Chinese President XI has vowed to strike back against the United States in a trade war that continues to escalate. President XI was quoted as saying whilst in the ‘West if somebody hits you on the left cheek, you turn the other cheek but in our culture we punch back’.
Overnight

  • US President Trump has slammed US Bike maker Harley Davidson’s plans to shift some it’s US production to it’s other worldwide sites in order to avoid the EU’s tariffs which are costing the company on average £1,660 per bike exported to the EU.
  • According to the SMMT, Britain’s car industry has fallen by half with Brexit uncertainty hampering decisions by major car companies. That 50% decline was based on investment of £647.4m during the first 6 months of 2017, versus investment of just £347.3m over the same period in 2018.
  • Japan SPPI y/y 1.0% as expected
  • Japan BOJ Core CPI y/y 0.5% (0.6% Exp)
  • Credit ratings agency S&P have upgraded Greece rating to B+/stable from B/positive.
Today
  • Not a great deal in the way of key data today. US Consumer Confidence headlines at 3pm.
  • Two Bank of England members due to speak this morning.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1354 +0.07
GBP/USD 1.3279 +0.02
EUR/USD 1.1693 -0.08
AUD/USD 0.7406 -0.09

 

Time (GMT) Region Data Release Forecast Previous
09.30 GBP High Street Lending 38.2K 38.0K
10.00 GBP BOE Member Haskel Speaks
10.30 GBP BOE Member McCafferty Speaks
11.00 GBP CBI Realised Sales 10 11
15.00 USD CB Consumer Confidence 127.6 128.0
15.00 USD Richmond Manufacturing Index 15 16
18.00 USD Fed Member Bostic Speaks