Newsletter – 4th June 2019

Morning Bulletin

Yesterday

  • GBP/EUR opened at 1.1306, traded a high of 1.1330, a low of 1.1252 and closed down 0.2% at 1.1260.
  • GBP/USD opened at 1.2626, traded a high of 1.2974, a low of 1.2610 and closed at 1.2663 representing an increase of 0.26% on the day.
  • UK manufacturing PMI came in weaker than expected at 49.4 vs 52.5 expected.
  • US ISM manufacturing PMI also came in weaker than expected at 52.1 vs 53.0.
  • US president Donald Trump was welcomed to Buckingham Palace by The Queen yesterday as he began his official state visit.
  • Some political leaders such as Jeremy Corbyn and Vince Cable turned down their invitation to a royal banquet in a stand against Trump’s views.
  • Fed’s Bullard commented that a rate cut may be warranted soon to lift inflation which further supported the bulls.
  • International Trade Secretary Liam Fox said a no-deal Brexit could be used as a ‘weapon’ for those ‘seeking to break up the United Kingdom’.
Overnight
  • Australian retail sales m/m came in weaker than expected at -0.1% vs 0.2% but current account data came in as expected at -2.9B.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.8131, 1.9203 and 136.80, respectively.
Today
  • PM May will today meet President Trump as part of Trump’s state visit to the UK.
  • At 10am we will see CPI Flash estimates from the UK.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1241 -0.14
GBP/USD 1.2646 -0.14
EUR/USD 1.1248 +0.07
AUD/USD 0.6977 +0.01

 

Time (GMT) Region Data Release Forecast Previous
10:00 EUR CPI Flash Estimate y/y 1.4% 1.7%
10:00 EUR Core CPI Flash Estimate y/y 1.0% 1.3%