Newsletter – 29th August 2019

Morning Bulletin

Yesterday

  • Yesterday was dominated by UK Prime Minister Boris Johnson’s highly controversial decision to prorogue Parliament. His move to effectively suspend parliament for a 5-week period during September and October has been met with a furious backlash from MP’s and members of the public alike, with protests springing up in cities across the UK.
  • The Prime Minister and a number of his cabinet colleagues have insisted the suspension is simply for the Government to put forward a fresh agenda and to hold a Queen’s speech announcing the Government’s future plans. However opposition MP’s and some of his own Conservative MP’s in fact, have voiced their outrage at what they see as a clear attempt to stifle Parliaments ability to debate Brexit with the October 31st deadline looming large.
  • Prior to the news the Pound was still trading near one-month highs of 1.2300 and 1.1080 against the US Dollar and Euro respectively.
  • The Pound fell sharply as the news broke and by the close of play was trading down -0.47% at 1.2222 against the US Dollar, and down -0.40% at 1.1030 against the Euro.
Overnight

  • Following Boris Johnson’s decision to prorogue Parliament an online petition in the UK surpassed 1 million signatures within a matter of hours. Any petition that achieves greater than 100,000 has to be considered for debate in Parliament.
  • A number of US Federal Reserve members have been speaking overnight and this morning. Kaplan has said he is open to a rate cut at the next meeting, whilst Barkin said he is undecided as consumers still appear strong although business confidence is suffering from the trade dispute with China.
  • New Zealand ANZ Business Confidence -52.3 (-44.3 Previous)
  • Australia Private Capital Expenditure q/q -0.5% (0.4% Exp)
  • Japan Consumer Confidence 37.1 (37.5 Exp)
  • French Prelim GDP q/q 0.3% (0.2% Exp)
  • Spanish Flash CPI y/y 0.3% (0.4% Exp)
  • German Unemployment Change 4K as expected
Today
  • All key European data has already been released this morning.
  • This afternoon US GDP will be the headline print due at 1.30pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1004 -0.16
GBP/USD 1.2192 -0.12
EUR/USD 1.1077 0.00
AUD/USD 0.6743 +0.14

 

Time (GMT) Region Data Release Forecast Previous
13.30 CAD Current Account -9.9Bn -17.3Bn
13.30 USD Prelim GDP q/q 2.0% 2.1%
13.30 USD Goods Trade Balance -74.0Bn -74.2Bn
13.30 USD Unemployment Claims 215K 209K
15.00 USD Pending Home Sales m/m 0.1% 2.8%