Newsletter – 9th August 2017

Morning Bulletin

Yesterday

  • In terms of economic data, there is not a great deal to report from yesterday with only JOLTS jobs openings from the US coming in stronger than expected at 6.16M vs 5.74M expected.
  • GBP/EUR traded 10-month lows yesterday falling slightly below 1.0999 before recovering to close at 1.1055.
  • Sterling lost ground on the dollar yesterday with GBP/USD closing a third of a percent lower than its opening rate of 1.3032 at 1.2993.
  • EUR/USD also posted losses closing down at 1.1752 after opening at 1.1793.
  • The tensions between the USA and North Korea took a concerning step yesterday with the Washington Post reporting that US intelligence are aware that North Korea are making missile-ready nuclear weapons.
  • N Korea’s state media said that Pyongyang were considering carrying out missile strikes on Guam – which is US territory.
  • US President Donald Trump warned Kim Jong-un that any attack on any US territory would be met with “fire and fury like the world has never seen before”.
  • On the back of the tensions, safe haven demand is increasing and Japanese Yen has gained value with USD/JPY breaking below 110.

Overnight

  • South Africa’s scandal-hit President Jacob Zuma survived an attempt to oust him of the country’s National Assembly. The motion of no-confidence in Zuma was defeated by 198 to 177. (CNN)
  • The Yen strengthened across the board in the Asian session as a result of the increasing tension between Pyongyang and Washington DC.
  • Chinese CPI y/y fell short of expectations coming in at 1.4% vs 1.5% whereas PPI y/y came in as expected at 5.5%.

Today

  • Data-wise, we have figures from the US, Canada and New Zealand to look forward to today.
  • At 1.30pm we expect building permits m/m from Canada and preliminary nonfarm productivity and unit labour costs from the US.
  • Later this evening we have the official cash rate from New Zealand which will be accompanied by the rate statement and followed by the RBNZ press conference.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1091 +0.33
GBP/USD 1.3015 +0.17
EUR/USD 1.1730 -0.18
AUD/USD 0.7869 -0.52

 

Time (GMT) Region Data Release Forecast Previous
13:30 CAD Building Permits m/m -1.8% 8.9%
13:30 USD Prelim Nonfarm Productivity q/q 0.7% 0.0%
13:30 USD Prelim Unit Labor Costs q/q 1.1% 2.2%
22:00 NZD Official Cash Rate 1.75% 1.75%
22:00 NZD RBNZ Rate Statement
22:00 NZD RBNZ Press Conference