Newsletter – 27th November 2017

Morning Bulletin


  • It was an unusually quiet data calendar for a Friday to end the week.
  • Despite political unrest, businesses in Germany remain increasingly bullish on the economic outlook with a German IFO Business Climate reading of 117.5 (116.6 Exp). That is a record high for the measure as German businesses capitalise on the Global economic upswing.
  • The Euro was in fact one of Friday’s best perfomers with the single currency buoyed by the prospect of a German Coalition Government back on the table.
  • It came to light Friday that Germany’s Social Democrats (SPD), headed up by Leader Martin Schulz, have done a u-turn and are now prepared to enter into discussions with Angela Merkels Conservative party. However Schulz stated this would not be an automatic move towards forming a coalition, and that any coalition would need to be passed by member vote.
  • The Euro’s most notable gains came against the US Dollar, having been trading around 1.1840 in the morning, the rate rallied as high as 1.1944 by late afternoon.
  • The Pound also performed solidly Friday, spurred on by comments from the EU Commission President Juncker who expressed his confidence that sufficient progress will have been made to allow Brexit talks to move on to the next phase.
  • US Flash Manufacturing PMI 53.8 (55.1 Exp)
  • US Flash Services PMI 54.7 (55.5 Exp)
Over The Weekend
  • Japan SPPI y/y 0.8% (0.9% Exp)
  • German Chancellor Merkel has ruled out fresh elections as she hopes to form a new coalition Government. The outcome of the new talks are unlikely to be known until the New Year.
  • The EU’s Donald Tusk insists the 4th December is the absolute deadline by which the UK must improve its Brexit Bill offer and provide a credible solution to the Irish Border. Failure would prevent EU leaders advancing trade talks.
  • Incredibly sparse data calendar for the day ahead.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1160 -0.07
GBP/USD 1.3337 0.00
EUR/USD 1.1946 +0.14
AUD/USD 0.7618 +0.11


Time (GMT) Region Data Release Forecast Previous
14.30 GBP BOE Member Haldane Speaks
15.00 USD New Home Sales 627K 667K
15.30 USD Dallas Fed Manufacturing Activity 24.0 27.6
22.30 USD Fed Member Kashkari Speaks