Newsletter – 30th August 2017

Morning Bulletin

Yesterday

  • The US dollar weakened initially yesterday as fears of escalated US military action against North Korea were at the forefront of investors minds.
  • This came as North Korea sent a missile through Japanese airspace in a move that has been condemned by world leaders. US President Trump said that all options are on the table added that Pyongyang is clearly signalling its contempt for its neighbours, for all members of the UN and for minimum standards of acceptable international behaviour.
  • GBP/USD pushed as high as 1.2979 after opening at 1.2931 and EUR/USD broke the 1.20 level to trade up at 1.2070.
  • More information came out regarding the missile throughout the US session and fears of military action abated somewhat so we saw US dollar losses erased against other major currencies.
  • GBP/USD came off to close lower on the day at 1.2916 and EUR/USD similarly closed down at 1.1971. US stocks closed higher and the US dollar index closed up a tenth of a percent.
  • Theresa May’s spokeswoman said that Britain feels it is in a good position in Brexit negotiations and wants to agree with the EU to move to discussions regardings its future relationship by October.
  • It was a quiet day in terms of data with only CB consumer confidence from the US coming in better than expected at 122.9 vs 120.9 expected and RMPI m/m from Canada coming in weaker than expected at -0.6% vs -0.2%.
Overnight
  • Building Approvals m/m and Construction Work Done q/q from Australia both came in better than expected with figures of -1.7% vs -5.4% and 9.3% vs 0.9%, respectively.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.6209, 1.7803 and 142.15, respectively.
Today
  • This morning we have seen Spanish Flash CPI y/y fall slightly short of expectations at 1.6% vs 1.7%.
  • We have net lending to individuals m/m from the UK at 9.30am before attention turns to the US and Canada this afternoon.
  • We expect US ASP Non-farm employment change at 1.15pm before current account data from Canada and US preliminary GDP q/q at 1.30pm.
  • FOMC member Powell speaks in Chicago at 2.15pm
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.0813 +0.18
GBP/USD 1.2922 +0.03
EUR/USD 1.1945 -0.22
AUD/USD 0.7968 +0.27

 

Time (GMT) Region Data Release Forecast Previous
09:30 GBP Net Lending to Individuals m/m 5.3B 5.6B
13:15 USD ADP Non-farm Employment Change 185K 178K
13:30 CAD Current Account -17.3B -14.1B
13:30 USD Prelim GDP q/q 2.7% 2.6%
14:15 USD FOMC Member Powell Speaks