- Sterling performed well yesterday gaining ground on both the euro and the US dollar.
- GBP/EUR opened at 1.1360 and traded a daily low of 1.1323 before rallying to close up 0.38% on the day at 1.1404
- GBP/USD followed a similar pattern opening at 1.4073, trading a low of 1.3979 before closing at 1.4143 representing a 0.49% increase on the day.
- UK net lending to individuals m/m came in at 5.2B vs 4.8B.
- Eurozone preliminary flash GDP q/q came in as expected at 0.6% and CB consumer confidence from the US came in better than expected at 125.4 vs 123.2.
- US President has used the strong performance of the US economy to claim that there has never been a better time to start living the ‘American dream’.
- UK PM Theresa May pledged to create a ‘golden era’ of UK-China relations yesterday before her visit to China. She also said that she was not a ‘quitter’ in response to question raised about her future.
- Australian CPI q/q came in every so slightly softer than expected overnight at 0.6% vs 0.7%. Trimmed mean CPI q/q came in at 0.4% vs 0.5% expected.
- Chinese non-manufacturing PMI and manufacturing PMI came in at 55.3 and 51.3, respectively.
- This morning we have seen German retail sales m/m fall short of expectations coming in at -1.9% vs -0.3% and Spanish CPI y/y come in weaker than expected at 0.5% vs 0.9%.
- At 10am we have CPI flash estimate y/y from the Eurozone.
- This afternoon we expect ASP non-farm employment change from the US and GDP m/m from Canada.
- This evening the FOMC statement will be released along with the Fed rate which is expected to remain at <1.50%.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|10:00||EUR||CPI Flash Estimate y/y||1.3%||1.4%|
|10:00||EUR||Core CPI Flash estimate y/y||1.0%||0.9%|
|13:15||USD||ADP Non-farm employment change||186K||250K|
|13:30||USD||Employment Cost Index q/q||0.6%||0.7%|
|15:00||USD||Pending Home Sales m/m||0.5%||0.2%|
|19:00||USD||FOMC Federal Funds Rate||<1.50%||<1.50%|