Newsletter – 9th May 2018

Morning Bulletin

Yesterday

  • Sterling was one of the main beneficiaries of a slow news day yesterday, with the Pound making solid gains across the board in FX space. Gains against the rampant US Dollar were however limited.
  • Having opened around the Mid 1.1300’s, GBP/EUR rallied to close the day hovering around the 1.1400 mark and up around +0.25% on the day.
  • The best gains for the Pound came against the struggling antipodean currencies, closing the day around 1.8160 and 1.9420 against the Aussie and Kiwi Dollars respectively.
  • US JOLTS Job Openings 6.55M (6.02M Exp)
  • US NFIB Small Business Index 104.8 (105.2 Exp)
  • Canadian Housing Starts 214K (218K Exp)
  • Speaking yesterday afternoon US Fed Chair Powell said that the Fed’s policy normalization had proceeded without disruption to the financial markets, adding that he felt the markets expectations for policy seemed fairly well aligned with that of the Fed’s policy makers.
Overnight

  • The major story overnight is the United States pulling out of the Iran nuclear deal. Despite calls from European leaders for them to reconsider, The Trump administration withdrew from the pact and will reimpose economic sanctions ‘at the highest level’ on Iran. Fulfilling a campaign promise President Trump said ‘the deal is defective at its core. If we do nothing, we know exactly what will happen’.
  • In defiance to Trump’s message, The EU have vowed to uphold the Iranian Nuclear deal, with the UK, Germany and France also issuing their joint support. Iranian President Rouhani has said Iran would remain committed to the deal even without US involvement.
  • UK BRC Retail Sales Monitor y/y -4.2% (-0.7% Exp)
  • Japan Average Cash Earnings y/y 2.1% (1.1% Exp)
  • French Industrial Production m/m -0.4% (+0.4% Exp)
Today
  • Relatively quiet day ahead again today, on the data front at least.

 

Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1424 +0.07
GBP/USD 1.3528 -0.13
EUR/USD 1.1837 -0.22
AUD/USD 0.7420 -0.41

 

Time (GMT) Region Data Release Forecast Previous
09.00 EUR Italian Retail Sales m/m 0.1% 0.4%
13.30 CAD Building Permits m/m 2.0% -2.6%
13.30 USD PPI m/m 0.2% 0.3%
15.00 USD Final Wholesale Inventories m/m 0.6% 0.5%
22.00 NZD RBNZ Official Cash Rate 1.75% 1.75%
22.00 NZD RBNZ Monetary Policy Statement