Yesterday

• GBP/EUR opened at 1.1681, traded a high of 1.1717, a low of 1.1671 and closed at 1.1686 yesterday representing a 0.02% increase on the day.
• GBP/USD opened at 1.3253, traded a high of 1.3311, a low of 1.3240 and closed at 1.3264 representing a 0.07% increase on the day.
• I TV political editor Robert Peston was yesterday reporting that a large Conservative revolt was under way to stop prime minister Theresa May from asking for a delay over 9 months.
• Brexit secretary Stephen Barclay has insisted that the prime minister may be able to hold another vote on her Brexit deal if she agrees the terms of an article 50 extension believing that would satisfy the objections of the House of Commons speaker, John Bercow. (The Guardian)
• UK average earnings index 3m/y came in better than expected at 3.4% vs 3.2%. UK unemployment rate came in better than expected at 3.9% vs 4.0%.
• German ZEW economic sentiment came in better than expected at -3.6 vs -11.0.
• US Treasury secretary Steven Mnuchin and US trade representative Robert Lighthizer will travel to Beijing next week to continue US-China trade discussions.

Overnight

• New Zealand current account data came in better than expected at -3.26B vs -3.55B expected.
• GBP/AUD, GBP/NZD and GBP/JPY are trading at 1.8649, 1.9317 and 147.53, respectively.

Today

• Sterling has weakened this morning following the news that prime minister Theresa May will not ask for a long extension to article 50. No 10 added that  Mrs May shares the public’s “frustration” at Parliament’s “failure to take a decision”. The BBC are reporting that the delay would be beyond the end of June.
• UK CPI y/y came in at 1.9% vs 1.8% expected. PPI input m/m met expectations at 0.6% and RPI y/y also met expectations at 2.5%.

This evening the Fed are expected to keeps rates at <2.5%. The FOMC statement is released at 6pm UK time and the accompanying press conference is due to take place at 6.30pm.

 

MAJOR CURRENCY PAIRS
Current at time of distribution

Currency Pair	Interbank Rate	% Change on Day
GBP/EUR	1.1649	-0.32
GBP/USD	1.3222	-0.31
EUR/USD	1.1349	-0.01
AUD/USD	0.7092	+0.06

 

Time (GMT)	Region	Data Release	Forecast	Previous
18:00	USD	FOMC Economic Projections
18:00	USD	FOMC Statement
18:00	USD	Federal Funds Rate	<2.50%	<2.50%
18:30	USD	FOMC Press Conference
21:45	NZD	GDP q/q	0.6%	0.3%

 

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