- The Pound enjoyed a solid start to yesterday’s trading in FX space following better than expected Services data for May. The UK Services PMI print of 54.0 was better than the expected 52.9, and up on last month’s reading of 52.8. According to IHS Markit the survey ‘signaled a solid upturn in overall business activity across the service economy’, however there were also warnings that growth could slow in the months ahead.
- Following the release GBP/EUR rallied, breaching the 1.1400 handle to trade up to 1.1441 before eventually hitting a day’s high of 1.1462.
- Sterling also rallied against the US Dollar, trading from around 1.3320 prior to the figure up to 1.3381 in the immediate aftermath. The 1.3400 level was briefly breached late in the afternoon.
- Eurozone Retail Sales dissapointed during April with sales rising by just 0.1%. A rise of 0.5% had been forecast.
- The US ISM Non-Manufacturing PMI reading was in expansionary territory (>50.0) for the 100th consecutive month during May. The reading of 58.6 bettered the 57.9 expected with respondents to the industry survey remaining optimistic about business conditions and the overall economy.
- US JOLTS Job Openings 6.70M (6.49M Exp)
- New Zealand Global Dairy Trade index -1.3% (1.9% Previously)
- UK Labour Leader Jeremy Corbyn has made a significant policy shift to his parties stance on Brexit. His party will now commit to retaining the main elements of of Britain’s current relationship with the EU.
- According to reports ECB members will begin pivotal discussions on when an end will come to their unprecedented QE program at their June meeting next week, with a public announcement possible.
- Speaking yesterday evening ECB Member Jens Wiedmann said that Italy’s current political turmoil and the financial turbulence that accompanied it has shown that the Eurozone is not yet ‘crisis proof’.
- Australia GDP q/q 1.0% (0.9% Exp)
- Japan Average Cash Earnings y/y 0.8% (1.4% Exp)
- Swiss CPI m/m 0.4% (0.3% Exp)
- The vast majority of today’s data will be released this afternoon, with Canadian and US Trade Balances headlining at 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.10||EUR||Eurozone Retail PMI||48.6|
|11.40||GBP||BOE Member Tenreyro Speaks|
|13.30||CAD||Building Permits m/m||-1.0%||3.1%|
|17.00||GBP||BOE Member McCafferty Speaks|