- The US Dollar was yesterday’s biggest out-performer in FX space. The Dollar was already on the front-foot during the morning session but was given an extra lift following better than expected GDP data, with the US Economy growing2.9% in the final quarter of 2017.
- Having opened the morning at around 1.4177, GBP/USD closed the day down at 1.4085.
- Similarly EUR/USD plummeted from 1.2393 to 1.2312 over the day’s trading.
- There were also a number of other prints out of the US:
- Goods Trade Balance -75.4Bn (-74.4Bn Exp)
- Prelim Wholesale Inventories m/m 1.1% (0.6% Exp)
- Pending Home Sales m/m 3.1% (2.1% Exp)
- According to a Times report yesterday morning the UK is expected to propose a new solution to Irish Officials on the post-Brexit hard border issue and to do so imminently.
- Speaking yesterday afternoon, US Fed Member Bostic said the Central Bank should continue to hike interest rates back to their long-term ‘neutral rate’. Currently the Fed forecast that rate to be 2.9%, and a level at which it’s neither expansionary nor contractionary for the economy.
- According to Canada’s Chief NAFTA negotiator the three countries are still some distance away from agreement on key aspects of the revised trade deal.
- Japan Retail Sales y/y 1.6% (1.7% Exp)
- UK GfK Consumer Confidence -7 (-10 Exp)
- UK Nationwide HPI m/m -0.2% (0.2% Exp)
- Swiss Economic Barometer 106.0 (107.3 Exp)
- Potentially busy day ahead to finish the month.
- Raft of UK data this morning, with GDP and Current Account data headlining.
- This afternoon we have plenty more out of North America, with Canadian GDP and US Unemployment Claims the focus of trading.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.30||GBP||Final GDP q/q||0.4%||0.4%|
|09.30||GBP||Net Lending to Individuals m/m||4.8Bn||4.7Bn|
|13.30||USD||Core PCE Price Index m/m||0.2%||0.3%|
|13.30||USD||Personal Spending m/m||0.2%||0.2%|
|15.00||USD||Revised UoM Consumer Sentiment||101.9||102.0|