Newsletter – 6th October 2017

Morning Bulletin

Yesterday

  • Sterling performed poorly yesterday as poor car sales data compounded an already weak pound following Theresa May’s disastrous speech on Thursday.
  • The September car sales figure is keenly observed by investors and is a big month for the car industry as many consumers wait until the new registration numbers come out in September before purchasing i.e. September is a barometer of the health of the UK new car market.
  • The figure was down a shocking 9.3% from September last year which is the first time in 6 years in which the figure has fallen. Diesel sales fell by over a fifth.
  • Similar figures from other European countries showed an increase in sales so many analysts have stated their concern at the poor figure from the UK.
  • GBP/USD fell from 1.3244 to close at 1.3118 representing a 0.95% decline in sterling value against the dollar. GBP/EUR fell by half a percent on the day opening at 1.1257 and closing at 1.12.
  • In the afternoon we saw US unemployment claims come in better than expected at 260K vs 266K and US trade balance data came in as expected at -42.4B.
  • Canadian trade balance came in weaker than expected at -3.4B vs -2.6B expected.
Overnight
  • Little to report from the overnight session.
  • GBP/AUD is trading 1623, GBP/NZD is trading 1.8404 and GBP/JPY is trading 147.75.
Today
  • At 1.30pm we are expecting unemployment change and unemployment rate from Canada.
  • From the US we have non-farm payrolls at 1.30pm alongside average hourly earnings m/m and unemployment rate.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1175 -0.22
GBP/USD 1.3073 -0.35
EUR/USD 1.1696 -0.11
AUD/USD 0.7772 -0.28

 

Time (GMT) Region Data Release Forecast Previous
13:30 CAD Employment Change 13.9K 22.2K
13:30 CAD Unemployment Rate 6.3% 6.2%
13:30 USD Average Hourly Earnings 0.3% 0.1%
13:30 USD Non-farm Employment Change 82K 156K
13:30 USD Unemployment Rate 4.4% 4.4%