- President Trump criticised the EU’s trade practices in interview with Fox News yesterday whilst the EU have threatened to impose tariffs of around $300bn on US goods.
- The euro weakened following German political anxiety however Merkel and Seehofer yesterday evening reached an agreement over migration policy that had pushed the German government to the brink of collapse.
- EUR/USD came off by a third of percent after opening at 1.1675 and trading a low of 1.1591 before closing at 1.1639.
- On the data front, UK manufacturing PMI came in as expected at 54.4 and US ISM manufacturing PMI came in slightly better than expected at 60.21 vs 58.2.
- UK PM May stated that she wants the UK to have a customs relationship with the EU by the end of 2020 and will offer the ‘best of both worlds’.
- GBP/EUR opened at 1.1292, traded a high of 1.1305, a low of 1.1284 and closed at 1.1299.
- GBP/USD came off on the day opening at 1.3183 and trading a low of 1.3095 before closing at 1.3142.
- Australian building approvals m/m came in weaker than expected at -3.2% vs 0.1%.
- The Australian cash rate came in as expected at 1.50%.
- GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.7846, 1.9576 and 146.18.
- UK construction PMI came in slightly better than expected 53.1 vs 52.6.
- Sterling has started the day on the front foot with GBP/USD up 0.33% on the day and GBP/EUR up a tenth of a percent.
- We are expecting another quiet day on the data front.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|TENTATIVE||NZD||GDT Price Index||-1.2%|