Newsletter – 2nd April 2019

Morning Bulletin

Yesterday

  • MPs again failed to back an alternative Brexit plan out of a further four put to the House of Commons yesterday.
  • The four motions chosen by The Speaker and corresponding results were as follows;
    • Ken Clarke’s ‘customs union’ was defeated 273 votes for to 276 against.
    • Nick Boles’ ‘common market 2.0’ was defeated 261 votes for to 282 against.
    • Kyle and Wilson’s ‘confirmatory public vote’ was defeated 280 votes for to 292 against.
    • Joanna Cherry’s ‘parliamentary supremacy’ was defeated 191 votes for and 292 against.
  • The European Union’s chief negotiator Michel Barnier said in the light of the newest round of indicative votes, a no-deal Brexit is more likely now however it can be avoided. Barnier said that a long extension beyond 12th April carried “significant risks for the EU” and that a “strong justification would be needed” before the EU would agree.
  • UK manufacturing PMI came in better than expected at 55.1 vs 51.2.
  • Eurozone CPI flash estimate y/y came in weaker than expected at 1.4% vs 1.5%.
  • US retail sales came in weaker than expected at -0.2% vs 0.3%.
  • ISM manufacturing PMI came in at 55.3.
  • GBP/EUR opened at 1.1625, traded a high of 1.1728, a low of 1.1593 and closed at 1.1652 representing a +0.23% move on the day.
  • GBP/USD opened at 1.3037, traded a high of 1.3149, a low of 1.3009 and closed at 1.3101 representing a +0.51% move.
Overnight
  • Australian building approvals m/m came in far better than expected at 19.1% vs -1.7%.
  • Australian cash rate was kept at 1.50%.
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.8451, 1.9272 and 145.29, respectively.
Today
  • Prime Minister Theresa May is chairing two cabinet meetings this morning to try and find a way to push through the current impasse.
  • At 1.30pm we are expecting core durable good orders data from the US.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1648 -0.03
GBP/USD 1.3051 -0.37
EUR/USD 1.1203 -0.09
AUD/USD 0.7071 -0.57

 

Time (GMT) Region Data Release Forecast Previous
13:30 USD Core durable goods orders m/m 0.3% -0.2%
13:30 USD Durable goods orders m/m -1.1% 0.3%