Newsletter – 29th May 2018

Morning Bulletin

Over The Long Weekend

  • Italian politics remains in limbo with Italy’s President Mattarella rejecting the proposed Governments choice of candidates for Prime Minister and Finance Minister. The Italian League and Five Star parties had put forward the unknown legal Scholar Giuseppe Conte as PM and a Euro skeptic economist Savona as FM. President Matterella said the proposed candidates posed a risk for Italian families and their savings.
  • In response to questions around a proposed Government in Italy, German Chancellor Merkel said she would work with any Government that is formed but added there are principles within the Euro area and that there would be difficult questions to answer.
  • Sticking with European politics, and Spanish PM Mariano Rajoy could face a vote of no confidence by the end of the week. It comes following a court ruling that found his governing Popular Party has been benefiting for years from large kickbacks-for-contracts schemes.
  • A potentially historic Summit between US President Trump and Kim Jong-un appears to be back on the cards with one of North Korea’s most senior officials believed to be travelling to the US to make preparations.
  • The US Dollar has started the week on a strong footing in FX space, continuing it’s recent advance against its major currency counterparts.
  • The Euro was yesterday’s worst performer in FX space as political uncertainty in Europe weighs on the single currency.
  • Japan SPPI y/y 0.9% (0.5% Exp)
  • Japan Unemployment Rate 2.5% as expected
  • Swiss Trade Balance 2.29Bn (2.23Bn Exp)
Today
  • Very quiet on the data front today.
  • US Consumer Confidence the only key print at 3pm.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1449 +0.01
GBP/USD 1.3245 -0.48
EUR/USD 1.1566 -0.50
AUD/USD 0.7532 -0.16

 

Time (GMT) Region Data Release Forecast Previous
09.00 EUR M3 Money Supply y/y 3.9% 3.7%
09.00 EUR Private Loans y/y 3.2% 3.0%
15.00 USD CB Consumer Confidence 128.2 128.7