Newsletter – 6th March 2018

Morning Bulletin

Yesterday

  • We saw sterling strengthen across the board yesterday with GBP/USD gaining by just over a third of a percent with the market opening at 1.3799 and closing at 1.3848.
  • GBP/EUR posted a positive print for the first time in four attempts with the market stubbornly refusing to stay below the 1.12 support. It opened at 1.12, traded a low of 1.1175 before closing at 1.1226.
  • UK services PMI came in better than expected at 54.5 vs 53.3 at 9.30am.
  • Provisional results from the Italian election suggest a hung parliament with the Five Star Movement being the single largest party.
  • UK PM Theresa May, in a statement to Parliament, said that the UK can ‘set an example to the world’ in the way it negotiates a new relationship with the European Union after Brexit.
  • Sterling was boosted when the Prime Minister said that she is confident and close to a Brexit transition deal.
  • US ISM non-manufacturing PMI came in better than expected at 59.5 vs 58.9.
  • US President Donald Trump said that he will stand firm over plans to introduce tariffs on steel and aluminium.
Overnight
  • Australian current account data came in weaker than expected at -14.0B vs -12.3B. Retail sales m/m also came in soft at 0.1% vs 0.4%.
  • The Australian cash rate came in as expected at 1.5%.
  • GBP/AUD, GBP/JPY and GBP/NZD are currently trading 1.7813, 146.62 and 1.9092, respectively.
Today
  • Sterling has dipped around a tenth of a percent against the US dollar and euro this morning.
  • We have a quiet day ahead in terms of economic data with little to no high impact data scheduled.
  • However MPC member Haldane is due to make a speech at 6.15pm.
urrency Pair Interbank Rate % Change on Day
GBP/EUR 1.1209 -0.14
GBP/USD 1.3835 -0.10
EUR/USD 1.2339 +0.03
AUD/USD 0.7762 -0.02

 

Time (GMT) Region Data Release Forecast Previous
12:30 USD FOMC Member Dudley Speaks
15:00 CAD Ivey PMI 56.3 55.2
18:15 GBP MPC Member Haldane Speaks
21:35 AUD RBA Gov Lowe Speaks