Newsletter – 7th August 2017

Morning Bulletin

Friday

  • All the action took place in the Afternoon Friday with a raft of key data releases out of North America.
  • There was a real mixed bag of releases out of Canada, with the number of those employed falling short of expectations at 10,900 (13,100 Exp) yet the official Unemployment Rate dropped to 6.3%. That meant unemployment hit a nine year low and far exceeded the expected 6.5%.
  • The final release was the Canadian Trade Balance which was running a deficit of -3.6Bn, almost three times worse than the forecasted -1.3Bn.
  • The main event Friday was US ‘Non-Farm Employment Change’ data. Released at 1.30pm, it showed there were209,000 more Americans employed during the month of July, smashing the expected 182,000. There was also an upward revision to the previous months figures, from 222K to 231K.
  • President Trump wasted no time before patting himself on the back and taking credit for the increase in jobs, tweeting: ‘Excellent Jobs Numbers just released – and I have only just begun’.
  • Alongside the headline Non-Farm figure, there was confirmation that the US Unemployment Rate remained at4.3% (lowest level in recent times), whilst Average Hourly Earnings m/m was at 0.3% as expected.
  • The Dollar rallied aggressively in FX space following the Non-Farm print.
  • GBP/USD closed the day down -0.78% at 1.3034.
  • EUR/USD  closed the day down -0.96% at 1.1753.
  • USD/JPY closed the day up +0.69% at 110.80.
Over The Weekend

  • The UN Security Council voted unanimously to impose sanctions on North Korea, banning exports worth over $1Billion.
  • Australia AIG Construction Index 60.5 (56.0 previously)
  • Australia ANZ Job Advertisements m/m 1.5% (2.7% Previously)
  • New Zealand Inflation Expectations q/q 2.1% (1.9% Previously)
  • Swiss CPI m/m -0.3% as expected
  • UK Halifax HPI m/m 0.4% (0.3% Expected)
Today
  • Incredibly sparse of the data front today, with no key data set for release.
  • Please note there are bank holidays in Canada and Australia today.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1045 -0.21
GBP/USD 1.3049 +0.13
EUR/USD 1.1811 +0.33
AUD/USD 0.7926 -0.04

 

Time (GMT) Region Data Release Forecast Previous
09.30 EUR Eurozone Sentix Investor Confidence 28.3
15.00 USD Labour Market Conditions Index m/m 1.5
16.45 USD US Fed Member Bullard Speaks
18.25 USD US Fed Member Kashkari Speaks
20.00 USD Consumer Credit m/m 18.4Bn