Newsletter – 27th September 2017

Morning Bulletin


  • Trading was fairly muted yesterday morning with no key data set for release.
  • The Pound’s recent advance against the Euro continued during the morning hitting a 10-week high of 1.1421.
  • It was a different story versus the US Dollar however as GBP/USD, having opened a shade under 1.3500, tumbled into the Mid-1.3450’s.
  • The US Dollar advance also saw EUR/USD trading at a one-month low of 1.1757.
  • EU Council President Donald Tusk said he still believed not enough progress had been made for Brexit talks to move on to the next phase, however he said Theresa May’s speech in Florence on Friday was ‘realistic’ and showed the UK Government was moving away from a philosophy of ‘having their cake and eating it’.
  • US CB Consumer Confidence 119.8 (119.9 Exp)
  • US New Home Sales 560K (585K Exp)

  • In contrast to her colleagues who spoke on Monday, Fed Chair Janet Yellen said yesterday evening that the Fed should be ‘wary’ or hiking interest rates ‘too gradually’. Whilst acknowledging the current gradual pace is justified due to soft inflation, Yellen also said there is a risk of the jobs market becoming overheated, which could lead to inflation problems down the road should they not be careful.
  • The US Dollar rallied off the back of Yellen’s comments and continues to do so this morning.
  • Also speaking yesterday evening, one of Yellen’s colleagues at the Fed, Mr Bostic stated he would be comfortable hiking rates once again in December provided there are clear signs of growing inflation.
  • Not a great deal due this morning, maybe look out for Eurozone Money Supply at 9am and UK CBI Realised Sales data at 11am.
  • US Core Durable Goods Orders m/m is the key print this afternoon.
  • Later this evening attention will turn to the New Zealand Central Bank’s rate decision and accompanying statement.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1388 -0.22
GBP/USD 1.3388 -0.52
EUR/USD 1.1756 -0.30
AUD/USD 0.7854 -0.35


Time (GMT) Region Data Release Forecast Previous
09.00 EUR M3 Money Supply y/y 4.6% 4.5%
11.00 GBP CBI Realized Sales 6 -10
13.30 USD Core Durable Goods Orders m/m 0.2% 0.6%
15.00 USD Pending Home Sales m/m -0.5% -0.8%
16.45 CAD BOC Gov Poloz Speaks
19.00 USD Fed Member Brainard Speaks
21.00 NZD RBNZ Official Cash Rate 1.75% 1.75%
21.00 NZD RBNZ Rate Statement