Newsletter – 8th August 2018

Morning Bulletin

Yesterday

  • There was very little data released yesterday.
  • The Pound continued its recent slump in FX space:
    • GBP/EUR dropped from 1.1200 to 1.1160 by the close of play
    • GBP/USD fell from 1.2960 to 1.2930
  • UK Halifax HPI m/m 1.4% (0.2% Exp)
  • According to Bloomberg, UK PM Theresa May and her Brexit team are aiming to push the Brexit deadline back to the end of November, whilst EU officials want a showdown moment in September.
  • Following the US decision to restore sanctions on Iran, President Trump has warned that anyone trading with Iran will not trade with the US as of November. He also said the sanctions on Iran were the most biting ever imposed.
  • Canadian IVEY PMI 61.8 (64.2 Exp)
  • US JOLTS Job Openings 6.66M (6.74M Exp)
  • New Zealand Global Dairy Trade Index 0.0% (-1.7% Previous)
  • Bank of England Member McCafferty, who is about to leave the central bank, said it was reasonable for markets to expect a couple more rate hikes over the next couple of years provided the economy performs as expected.
Overnight

  • Speaking overnight Reserve Bank of Australia Governor Lowe reiterated that the central banks next move on interest rates is likely to be up, not down. His view is based on the RBA’s assumption that the economy will record good growth, the unemployment will come down and an inflation will increase overtime.
  • China Trade Balance 177Bn (229Bn Exp)
  • New Zealand Inflation Expectations q/q 2.0% as expected
  • Japan Current Account 1.76Tn (1.84 Tn Exp)
Today
  • No data of any significance set for release this morning.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1133 -0.20
GBP/USD 1.2903 -0.27
EUR/USD 1.1589 -0.07
AUD/USD 0.7414 -0.08

 

Time (GMT) Region Data Release Forecast Previous
13.30 CAD Building Permits m/m -0.1% 4.7%
13.45 USD Fed Member Barkin Speaks