- 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|
|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%|