Newsletter – 2nd January 2018

Morning Bulletin


  • There were just the three pieces of economic data released last Friday, the final trading day of 2017. All three were out of the Eurozone during the morning session, with contrasting fortunes where Inflation was concerned:
    • German Prelim CPI m/m 0.6% (0.5% Exp)
    • Spanish Flash CPI y/y 1.2% (1.5% Exp)
    • M3 Money Supply y/y 4.9% as expected.
  • The US Dollar closed out the week and the year on a soft note, losing ground notably against the Pound and the Euro. Having opened the day at around 1.3470, GBP/USD rallied to a day’s and one month’s high of 1.3544, before closing the day around 1.3524.
  • Similarly EUR/USD, having started the morning trading around 1.1950, rallied to a day’s and a near 4-month high of 1.2025.
  • Perhaps unsurprisingly the US Dollar Index, an index of the value of the US Dollar against a basket of foreign currencies, closed 2017 at a 3 and a half month low of 92.12. Having opened 2018 on a strong footing and buoyed by the promise of President Trumps sweeping tax reforms and major infrastructure spending, The Dollar has been one of the worst performing of the major currencies during 2017.
Over The Long Weekend

  • China Caixin Manufacturing PMI 51.5 (50.7 Exp)
  • China Manufacturing PMI 51.6 as expected
  • China Non-Manufacturing PMI 55.0 (54.8 Previously)
  • A New Year, but the same old Kim Jong-Un as overnight he warned the US that North Korea’s nuclear arsenal is now complete.
  • UK Manufacturing PMI is the only key print to look out for today and is released at 9.30am, with a reading of 58.0 expected.
  • Worth noting there are bank holidays in Japan and Switzerland today.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1256 +0.06
GBP/USD 1.3554 +0.35
EUR/USD 1.2041 +0.26
AUD/USD 0.7840 +0.47


Time (GMT) Region Data Release Forecast Previous
09.00 EUR Final Manufacturing PMI 60.6 60.6
09.30 GBP Manufacturing PMI 58.0 58.2
14.30 CAD Manufacturing PMI 54.4
TBC NZD GDT Price Index -3.9%
14.45 USD Final Manufacturing PMI 55.0 55.0