Newsletter – 4th January 2017


  • Sterling lost ground on the US dollar yesterday with GBP/USD coming off by 0.57%. The market opened at 1.3589 and closed at 1.3511.
  • GBP/EUR opened at 1.1267 before trading a high of 1.1301 before coming off to close at 1.1249.
  • UK construction PMI came in slightly weaker than expected yesterday morning with a figure of 52.2 vs 52.8.
  • ISM manufacturing PMI from the US beat expectations coming at 59.7 vs 58.1.
  • US President Donald Trump claimed yesterday that former White House aide Steve Bannon “lost his mind” after he lost his job. The President’s attempt to decredit Bannon comes after he was quoted in a new booking describing a meeting a group of Russions and Donald Trump Jr as “treasonous”. (BBC News)
  • Former Prime Minister Tony Blair yesterday accused Labour of being timid on Brexit and encouraged the party to “nail the myths” of the leave campaign and to fight for the right of voters to “think again”.


  • The Yen softened overnight on the back of the risk-on backdrop. USD/JPY has rallied by a third of a percent since Wednesday morning.
  • GBP/AUD, GBP/JPY and GBP/NZD are currently trading 1.7284, 152.53 and 1.9036, respectively.


  • This morning we have services PMI and net lending to individuals data from the UK.
  • We expect ADP non-farm employment change from the US at 1.15pm before US unemployment claims and Canadian RMPI m/m at 1.30pm.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1255 +0.04
GBP/USD 1.3543 +0.24
EUR/USD 1.2032 +0.15
AUD/USD 0.7837 +0.04


Time (GMT) Region Data Release Forecast Previous
09:30 GBP Services PMI 54.1 53.8
09:30 GBP Net Lending to Individuals m/m 4.9B 4.8B
13:15 USD ADP Non-farm Employment Change 191K 190K
13:30 CAD RMPI m/m 4.0% 3.8%
13:30 USD Unemployment Claims 241K 245K
16:00 USD Crude Oil Inventories -5.2M -4.6M