Newsletter – 4th June 2018

Morning Bulletin

Friday

  • The Pound rallied aggressively Friday morning following a surprise beat in UK Manufacturing data. The Manufacturing PMI print of 54.4 for May was better than the 53.5 forecast.
  • The Pound rallied from around 1.1360 to 1.1409 against the Euro after the print, but eventually closed the day up at 1.1450. Whilst against the US Dollar the Pound had traded as low as 1.3283 during the morning, but ended the day at 1.3346, that rise coming in spite of the impressive US data.
  • US jobs data headlined Friday afternoon and it was very much positive with the three readings all coming in better than expected.
  • The data showed that employment was up, the overall unemployment rate was down and that wages had risen. Breaking that down further, US average-earnings were up0.3% during May, that was better than the 0.2% forecasted rise. Non-Farm payrolls showed that some 223,000 more Americans were in employment last month, bettering the 189,000 expected. And lastly the US Unemployment Rate fell to an 18-year low of 3.8% having been expected to remain at 3.9%.
  • US ISM Manufacturing PMI 58.7 (58.3 Exp)
  • US Construction Spending m/m 1.8% (0.8% Exp)
  • As expected Friday, Spanish President Mariano Rajoy was ousted from power following a vote of no confidence in the wake of a corruption scandal that rocked his Governing Popular party. Following Rajoy’s departure, 46-year old Socialist Pedro Sanchez will now lead the Spanish Government, having never previously held a Governmental role.
Over The Weekend

  • US President Donald Trump announced Friday evening that an historic summit between himself and North Korean Leader Kim Jong-un was once again back on the cards. The announcement came following the visit of a high-ranking NK official to the White House on Friday.
  • Australia Retail Sales m/m 0.4% (0.3% Exp)
  • Australia Company Operating Profits q/q 5.9% (3.1% Exp)
  • Spanish Unemployment Change -83,000 (-105,700 Exp)
Today
  • Fairly quiet on the data front today.
  • UK Construction PMI is our key print at 9.30am this morning.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1417 -0.23
GBP/USD 1.3359 +0.13
EUR/USD 1.1700 +0.37
AUD/USD 0.7628 +0.84

 

Time (GMT) Region Data Release Forecast Previous
09.30 EUR Sentix Investor Confidence 18.6 19.2
09.30 GBP UK Construction PMI 52.0 52.5
10.00 EUR PPI m/m 0.2% 0.1%
15.00 USD Factory Orders m/m -0.4% 1.6%
18.00 GBP BOE member Tenreyo speaks