- 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.
- 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.
- 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|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|12:30||USD||FOMC Member Dudley Speaks|
|18:15||GBP||MPC Member Haldane Speaks|
|21:35||AUD||RBA Gov Lowe Speaks|