Newsletter – 7th April 2017

Morning Bulletin


  • We’ll kick off today’s newsletter by talking about a currency that we don’t mention all too often, that being the Czech koruna.
  • The koruna has been pegged to the euro up until yesterday when the Czech National Bank decided to discontinue the use of the exchange rate as an additional instrument for easing monetary condition (PoundSterlingLive).
  • As a result, CZK was left to float freely and it immediately gained value against the pound, the euro and the US dollar.
  • GBP/CZK fell from an open of 31.63 to a close nearing 31.20, USD/CZK from 25.3280 to 25.0000 and EUR/CZK from 27.0291 to 21.6161.
  • Elsewhere it was a relatively quiet day in terms of market movement and economic data with the only high impact data anywhere being US unemployment claims which came in better than expected at 234K vs 251K expected.
  • We did also see Swiss CPI m/m match expectations at 0.2%  and Canadian building permits miss its estimate at -2.5% vs 1.4%.


  • We saw some low impact data from Australia and Japan overnight.
  • Australian AIG construction index came in at 51.2 whereas Japanese average cash earnings y/y came in slightly softer than expected at 0.4% vs 0.5%.
  • GBP/AUD is trading 1.6544 this morning and GBP/JPY is trading at 137.80.


  • This morning we have manufacturing production m/m and good trade balance data from the UK before Bank of England Governor Mark Carney speaks at Thompson Reuters in London at 10am.

At 1.30pm we will see employment change and unemployment rate data from Canada and average hourly earnings m/m, unemployment rate and of course non-farm payrolls from the US.

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1712 -0.03
GBP/USD 1.2460 -0.07
EUR/USD 1.0637 -0.05
AUD/USD 0.7528 -0.19


Time (GMT) Region Data Release Forecast Previous
09.30 GBP Manufacturing Production m/m 0.3% -0.9%
09.30 GBP Goods Trade Balance -10.9B -10.8B
13.30 CAD Employment Change 5.7K 15.3K
13.30 CAD Unemployment Change 6.7% 6.6%
13.30 USD Average Hourly Earnings m/m 0.2% 0.2%
13.30 USD Non-farm Employment Change 174K 235K
13.30 USD Unemployment Rate 4.7% 4.7%