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May 9th Market Updates

Very little in the way of economic data yesterday.
Sterling was one of the biggest fallers in FX space yesterday. The optimism that had peaked Friday afternoon following positive rhetoric from both Theresa May and Jeremy Corbyn has slowly ebbed away over the course of this week.
That was reinforced by reports yesterday that Brexit talks between the Labour party and the Government had reached ‘near collapse’. Although it’s worth noting talks are still scheduled to continue.
GBP/EUR closed the day just above the 1.1600 handle having dropped -0.57%.
GBP/USD similarly closed just a fraction above the 1.3000 handle, recorded a loss of -0.37%.
On a more positive note, in the event of a no-deal Brexit, the Bank of England are confident the UK Banking sector would be resilient according to BOE Dep Governor Ramsden. He also added that the BOE has been largely successful in working with other authorities in the UK and EU to mitigate the risks of a possible disorderly Brexit.

Overnight

The prospect of the US and China ending their trade dispute appears to have hit another bump in the road with US President Trump saying that China broke the deal in trade talks. Once again both sides have threatened to introduce greater tariffs however trade talks are due to continue today.
Speaking overnight, and following yesterday’s first rate cut in two and a half years, RBNZ Governor Orr said he cannot yet say whether the Kiwi central bank will need to cut rates again.
Polling in South Africa has now closed and the votes are being counted. Whilst the ruling ANC party is likely to win once again, the vote is expected to be alot closer this time around as people are angry about the state of the economy and alleged corruption.
China CPI y/y 2.5% as expected
China PPI y/y 0.9% (0.6% Exp)Japan Consumer Confidence 40.4 (40.3 Exp)

Today

No data chalked up for release this morning.
This afternoon there is a raft of data out of Canada and the United States from 1.30pm. US Fed Chair Powell is also due to speak around that time.

MAJOR CURRENCY PAIRS
Current at time of distribution

ECONOMIC CALENDAR
Current at time of distribution

Time (GMT)	Region	Data Release	Forecast	Previous
13.30	CAD	Trade Balance	-2.4Bn	-2.9Bn
13.30	USD	Fed Chair Powell Speaks
13.30	USD	PPI m/m	0.2%	0.6%
13.30	USD	Trade Balance	-51.4Bn	-49.4Bn
13.30	USD	Unemployment Claims	215K	230K
15.00	USD	Final Wholesale Inventories m/m	0.00%	0.00%