Newsletter – 4th September 2017

Morning Bulletin


  • UK Manufacturing PMI for August smashed expectations Friday morning, with the actual print of 56.9 comfortably beating the expected 55.0. Driven by widespread growth across sectors, that was the highest reading since May and the second highest reading since Mid-2014.
  • That print gave Sterling a real lift in FX space with the Pound rallying to a day’s high of 1.2995 against the US Dollar and 1.0919 against the Euro. However whilst gains against the Euro were largely sustained, the Pound very quickly retreated against the Dollar eventually closing the day in the Mid-1.2900 area.
  • US jobs data dominated the afternoon session and all three key measures fell short of expectations, with earnings down, less jobs created than forecast and the overall US Unemployment rate up:
    • Average Hourly Earnings m/m 0.1% (0.2% Exp)
    • Non-Farm Employment Change 156K (180K Exp)
    • Unemployment Rate 4.4% (4.3% Exp)
  • Whilst the Dollar was initially sold off, there was some respite for the Greenback in the form of a positive Manufacturing print a little later on. US ISM Manufacturing PMI came in at58.8, far exceeding the expected 56.5; that was the highest reading since late 2014.
  • The Euro was on the back-foot for much of Friday’s trading as sources reported that ECB policy makers may not be ready to finalize a decision on tapering down/ending their massive bond buying program until December’s meeting.
Over The Weekend

  • The UN Security Council will hold emergency meeting today following North Korea’s successful test of a Hydrogen Bomb over the weekend.
  • Japan Monetary Base y/y 16.3% (15.6% Exp)
  • Australia MI Inflation Gauge m/m 0.1% (0.1% Previous)
  • Australia Company Operating Profits q/q -4.5%  (-3.9% Exp)
  • Spanish Unemployment Change 46.4K (16.3K Exp)
  • Incredibly sparse data calendar with Bank Holidays in both the US and Canada.
  • UK Construction PMI our only key figure due at 9.30am.


Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.0877 -0.36
GBP/USD 1.2942 -0.06
EUR/USD 1.1898 +0.31
AUD/USD 0.7950 -0.15


Time (GMT) Region Data Release Forecast Previous
09.30 GBP Construction PMI 52.1 51.9
09.30 EUR Sentix Investor Confidence 27.4 27.7
10.00 EUR Eurozone PPI m/m 0.1% -0.1%