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Foreign Exchange Daily Market Update 22/03/18

Thu, March 22, 2018

Pound Naysayers Turn Believers for Now After Brexit Transition

The positive news that buoyed the pound this week is persuading even some bears to switch sides.

Deutsche Bank AG and MUFG have abandoned their short-term bearish views on sterling, which has rebounded above $1.40 after the much-awaited Brexit transition deal released on Monday and the latest jobs data has shown faster wage growth.

After month of negotiation, the U.K. and the European Union reached an agreement this week for a 21-month transition period that’s due to start in March 2019. Money-market pricing shows the likelihood of a BOE rate increase by May rose to 89% after Wednesday’s employment report, from about 81% at the end of last week.

Elsewhere, the three-month dollar London interbank funding rate continued increasing, rising to 2.27% yesterday, the highest since November 2008. Yields on U.K. 10-year government bonds extended their gain after data showed wages are increasing in Britain at their fastest pace since the end of 2016.

The pound was at $1.4065 on Wednesday, having gained close to 1% this week. The U.K. central bank is scheduled to make its next policy announcement Thursday, and any hints that borrowing costs will be raised in May could stimulate further pound gains.

The euro rose 0.3%. The British pound gained 0.2%. The Japanese yen climbed 0.4% to 105.65 per dollar.

 

Data to look out today.   

00:00        EUR EU Leaders Meet in Brussels

12:00 GBP Bank of England Rate

12:00 GBP BOE Asset Purchase Target

13:00 USD House Price Index

CURRENCY PAYMENTS MADE SIMPLE

 

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

Data Releases

Day Time Currency Event
THU EUR 08:00 EUR Markit France Manufacturing PMI
THU EUR 08:00 EUR Markit France Services PMI
THU EUR 08:00 EUR Markit France Composite PMI
THU EUR 08:30 EUR Markit/BME Germany Manufacturing PMI
THU EUR 08:30 EUR ECB's Lautenschlaeger speaks in Brussels
THU EUR 08:30 EUR Markit Germany Services PMI
THU EUR 08:30 EUR Markit/BME Germany Composite PMI
THU EUR 09:00 EUR Markit Eurozone Manufacturing PMI
THU EUR 09:00 EUR Euro-Zone Current Account s.a. (euros)
THU EUR 09:00 EUR Euro-Zone Current Account n.s.a. (euros)
THU EUR 09:00 EUR German IFO Business Climate
THU EUR 09:00 EUR German IFO Expectations
THU EUR 09:00 EUR German IFO Current Assessment
THU EUR 09:00 EUR ECB Publishes Economic Bulletin
THU EUR 09:00 EUR Markit Eurozone Services PMI
THU EUR 09:00 EUR Markit Eurozone Composite PMI
THU GBP 09:30 GBP Retail Sales Ex Auto Fuel (MoM)
THU GBP 09:30 GBP Retail Sales Ex Auto Fuel (YoY)
THU GBP 09:30 GBP Retail Sales Inc Auto Fuel (MoM)
THU GBP 09:30 GBP Retail Sales Inc Auto Fuel (YoY)
THU GBP 12:00 GBP Bank of England Bank Rate
THU GBP 12:00 GBP BOE Asset Purchase Target
THU GBP 12:00 GBP BOE Corporate Bond Target
THU USD 12:30 USD Initial Jobless Claims
THU USD 12:30 USD Continuing Claims
THU USD 13:00 USD House Price Index (MoM)
THU USD 13:45 USD Markit US Manufacturing PMI
THU USD 14:00 USD Leading Index
THU USD 14:30 USD EIA Working Natural Gas Implied Flow
THU USD 14:30 USD EIA Natural Gas Storage Change
THU USD 14:45 USD Markit US Services PMI
THU USD 14:45 USD Markit US Composite PMI
THU USD 15:00 USD Kansas City Fed Manf. Activity
THU USD 17:00 USD U.S. to Sell USD11 Bln 10-Year TIPS Reopening
THU GBP 17:00 GBP BOE's Ramsden speaks in London.
THU USD USD Revisions: Industrial Production Capacity Utilization
THU EUR EUR EU Leaders Meet in Brussels
THU USD USD US Tariff Grace Period Ends

Foreign Exchange Rates

GBP / USD 1.41460
GBP / EUR 1.14658
EUR / USD 1.23301
GBP / CAD 1.82056
GBP / AUD 1.82892
GBP / CHF 1.34008
GBP / CZK 29.1047
GBP / DKK 8.53928
GBP / HKD 11.09004
GBP / INR 91.9659
GBP / JPY 149.296
GBP / MUR 45.99
GBP / NOK 10.90923
GBP / NZD 1.95218
GBP / PLN 4.84250
GBP / SEK 11.57751
GBP / SGD 1.85899
GBP / THB 44.1679
GBP / TRY 5.53891
GBP / ZAR 16.71146

*These are indicative rates only, based on interbank prices at the time of writing. For exact rates please contact our dealing team

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