- 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.
- 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%.
- 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|
|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|