Newsletter – 6th December 2017

Morning Bulletin

Yesterday

  • The Final UK PMI print of the month dissapointed with Services PMI falling short of expectations in November. The print of 53.8 was still comfortably in expansionary territory but was below the 55.2 expected.
  • The only other data yesterday morning was out of the Eurozone with their Services PMI print bang in-line with expectations at 56.2, however there was a big miss in Retail Sales with October Sales down -1.1% (-0.6% Exp).
  • The Telegraph reported yesterday that DUP Leader Arlene Foster had ruled out flying to London to meet with PM May as her party was ‘far away’ from agreeing any deal with the Government on the Irish Border issue.
  • The Brexit issue has of cause continued to weigh on the Pound in FX markets, with Sterling briefly trading a 6-day low versus the US Dollar and Euro yesterday morning at 1.3370 and 1.1277 respectively.
  • According to one poll the Catalan Separatist parties that tried to break the region away from Spain could lose their absolute majority in the regional parliamentary elections later this month.
  • Canada’s Trade Balance deficit dropped to -1.5Bn in October, down from -3.4Bn the previous month and better than the expected -2.3Bn. The narrowing of the trade deficit was a combination of rising Exports (+2.7%) and a decrease in Imports (-1.6%).
  • In contrast to Canada, the US saw its Trade Balance deficit widen to -48.7Bn in October, its highest level in 9 months, and exceeding the -46.2Bn deficit forecast.
  • US ISM Non-Manufacturing PMI 57.4 (59.2 Exp).
Overnight

  • US Fed member Evans may dissent from voting for a rate hike in December, instead preferring to wait and see if Inflation picks up and gets back on track to the Fed’s 2% target.
  • Australia GDP q/q 0.6% (0.7% Exp)
  • German Factory Orders m/m 0.5% (-0.2% Exp)
  • Swiss CPI m/m -0.1% (0.0% Exp)
Today
  • Very little of note on the data calendar this morning.
  • The Canadian Central Bank (BOC) will be in focus this afternoon with their interest rate decision and accompanying rate statement.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1340 -0.20
GBP/USD 1.3409 -0.24
EUR/USD 1.1822 -0.02
AUD/USD 0.7583 -0.30

 

Time (GMT) Region Data Release Forecast Previous
09.10 EUR Eurozone Retail PMI 51.1
13.15 USD ADP Non-Farm Employment Change 189K 235K
13.30 CAD Labour Productivity q/q -0.4% -0.1%
15.00 CAD BOC Overnight Rate 1.00% 1.00%
15.00 CAD BOC Rate Statement