Newsletter – 28th March 2017

Morning Bulletin


  • We witnessed sterling gain ground on its counterparts yesterday with GBP/EUR gaining one tenth of a percent and GBP/USD gaining over half of a percent on the day.
  • The US dollar lost ground on euro and the pound yesterday morning mainly due to Trump’s healthcare reform failure but did stabilise and regain some value during the US session.
  • EUR/USD opened particularly strongly yesterday at 1.0833 despite closing on Friday at 1.0796.
  • Closing rates of GBP/EUR, GBPUSD and EUR/USD were 1.1559, 1.2557 and 1.0863.
  • Kaplan of the US Federal Reserve said that rate hikes should be implemented gradually and will continue to support hikes as long as the US economy continues to progress.
  • The Fed’s Evans said that three rate hikes is plausible for 2017 but said that to argue the case for four hikes would be difficult without a stronger lift in inflation.
  • The only data of note yesterday was German Ifo Business Climate data coming in strongly at 112.3 vs 111.2 expected.
  • The Australian dollar suffered on Monday losing ground on both sterling and the dollar. GBP/AUD is currently trading 1.6544 and AUD/USD is trading down at just below 0.76.
  • It’s going to be a quiet day in terms of economic data releases with only US wholesale inventories due at 12.30pm and CB Consumer Confidence to be released at 2pm.
  • We do expect speeches from Coeure of the ECB at 8am followed by Makuch at 12pm. George, Yellen and Kaplan all speak publicly this evening at 5.45pm, 5.50pm and 6pm, respectively.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1584 +0.22
GBP/USD 1.2578 +0.18
EUR/USD 1.0856 -0.06
AUD/USD 0.7598 -0.18


Time (GMT) Region Data Release Forecast Previous
12:30 USD Wholesale Inventories m/m 0.2% -0.2%
14:00 USD CB Consumer Confidence 113.9 114.8
23:50 JPY Retail Sales y/y 0.7% 1.0%