Newsletter – 27th June 2017

Morning Bulletin

Yesterday

  • Sterling lost ground on the euro yesterday morning posting small losses before a modest rally in the afternoon saw the pound close roughly inline with the rate we saw at the open.
  • GBP/EUR opened at 1.1361 and traded down 1.1349 before news broke that the Conservative Party and the DUP had struck a deal to form a government. GBP/EUR then went on to touch 1.1398 before closing at 1.1374.
  • Against the US dollar, sterling posted its first loss since last Tuesday as the news of a Conservative-DUP agreement had little effect on cable. GBP/USD closed 12 points down on the day ending up at 1.2721.
  • The deal between the Conservatives and the DUP will see £1.5bn of financial support flowing to Northern Ireland while the DUP claim to have also secured guarantees that the triple-lock on pensions will remain and so will winter fuel allowance payment in their current form.
  • On the data front, we saw German Ifo business climate come in better than expected at 115.1 vs 114.7 expected.
  • US core durable goods orders m/m and durable goods orders m/m came in weaker than expected at 0.1% vs 0.4% and -1.1% vs -0.5%, respectively.

Overnight

  • GBP/AUD is trading at 1.6713 whereas GBP/NZD and GBP/JPY are trading at 1.7382 and 142.03, respectively.

Today

  • ECB President Draghi is currently speaking at the ECB Forum on Central Banking in Portugal this morning.
  • The Bank of England financial stability report is released at 10.30am with Governor Mark Carney speaking in a press conference about the report shortly after at 11am.
  • This afternoon we see CB consumer confidence released from the US at 3pm before more speeches from FOMC member Harker and Fed Chair Janet Yellen at 6pm.
  • This evening FOMC member Kashkari speaks in Michigan at 10pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1364 -0.09
GBP/USD 1.2740 +0.17
EUR/USD 1.1211 +0.27
AUD/USD 0.7623 +0.52

 

Time (GMT) Region Data Release Forecast Previous
10:30 GBP BOE Financial Stability Report
11:00 GBP BOE Gov Carney Speaks
15:00 USD CB Consumer Confidence 116.1 117.9
16:15 USD FOMC Member Harker Speaks
18:00 USD Fed Chair Yellen Speaks
22:30 USD FOMC Member Kashkari Speaks