Newsletter – 5th April 2018

Morning Bulletin


  • Sterling gained ground on both the euro and US dollar yesterday despite UK construction PMI coming in weaker than expected.
  • The construction PMI figure came in at 47.0 vs 50.9 expected and sterling did trade slightly lower  against the euro on the data release trading a low of 1.1414. The market did recover however to close at 1.1466. 
  • Eurozone CPI flash estimate y/y came in as expected at 1.4% but core CPI flash estimate y/y came in slightly weaker than expected at 1.0% vs 1.1%.
  • ADP non-farm employment change produced a better figure than expected of 241K vs 208K and that was followed by ISM non-manufacturing PMI which came in as expected at 58.8.
  • US President Donald Trump said the US are not in a trade war with China however Commerce Secretary Ross said the US would not lose if it gets into a trade war.
  • Sterling opened at 1.4054 and closed at 1.4076 against the US dollar.


  • Australian trade balance came in at 0.83B vs 0.68B expected.
  • GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.8260, 1.9268 and 150.35, respectively.


  • UK services PMI came in at 51.7 vs 53.9 expected.
  • We expect Canadian trade balance data at 12.30pm alongside US unemployment claims.
  • At 5pm FOMC member Bostic is due to speak about financial literacy at the University of South Florida.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1450 -0.14
GBP/USD 1.4042 -0.24
EUR/USD 1.2263 -0.14
AUD/USD 0.7689 -0.34


Time (GMT) Region Data Release Forecast Previous
12:30 CAD Trade Balance -2.1B -1.9B
12:30 USD Unemployment Claims 225K 215K
17:00 USD FOMC Member Bostic Speaks