Newsletter – 6th June 2017

Morning Bulletin


  • There were a raft of individual European member state Service PMI prints released yesterday morning, all of which were roughly in-line with expectations. They were soon followed by the overall Eurozone Services PMI print, which unsurprisingly then was also almost bang in-line with forecasts at 56.3 (56.2 Exp) as a result.
  • UK Services PMI disappointed yesterday morning, with a print of 53.8 falling short of the expected 55.1. This was the lowest print in 3 months, but nonetheless comfortably indicates industry expansion (Above 50.0). Sterling was largely unmoved by this weak print as political issues continue to dominate the Pound’s movement.
  • Those raft of UK Election polls we included in yesterday’s newsletter certainly appeared to give markets and investors a degree of confidence as the Pound was one of the best performers on the day, and enjoyed a rare positive day of late. Despite one or two of the polls narrowing, across the board they still appeared to point toward a Tory win, albeit a narrow one.
  • GBP/USD rallied to a day’s high of 1.2940, whilst GBP/EUR hit 1.1501. worth noting however neither of these levels was sustained for very long before the Pound retreated.
  • Other Data of Note:
    • US ISM Non-Manufacturing PMI 56.9 (57.1 Exp)
    • US Factory Orders m/m -0.2% (-0.2% Exp)
    • US Revised NonFarm Productivity q/q 0.0% (-0.6% Exp)
  • Overnight the Reserve Bank of Australia opted to keep interest rates on hold at 1.50% as expected. In their minutes the RBA suggested risks are finely balanced.
  • UK BRC Retail Sales Monitor y/y -0.4% (-0.2% Exp). Worth noting previous reading was +5.6%.
  • Japan Average Cash Earnings y/y 0.5% (0.3% Exp).
  • Australia Current Account -3.1Bn (-0.2Bn Exp).
  • UK ELECTIONS: Survation Poll: Tories 41.5% vs Labour 40.4%.
  • Potentially quiet day ahead with little key data due for release.
  • US JOLTS Job openings will probably garner the most attention at 3pm.
  • No doubt there will be some twists and turns ahead however, particularly where Sterling is concerned with the current political backdrop.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1488 +0.25
GBP/USD 1.2929 +0.22
EUR/USD 1.1252 -0.01
AUD/USD 0.7481 -0.05


Time (GMT) Region Data Release Forecast Previous
09.10 EUR Eurozone Retail PMI 52.7
09.30 EUR Sentix Investor Confidence 27.6 27.4
10.00 EUR Eurozone Retail Sales m/m 0.2% 0.3%
15.00 CAD Ivey PMI 62.0 62.4
15.00 USD JOLTS Job Openings 5.65M 5.74M
TBC NZD GDT Price Index 3.2%