Compass Global Markets' Blog

Market Update - 14th June 2017 - GBP Surges On Strong Economic Data, U.S Fed Tipped To Hike Rates Again

Posted by Patrick Downes on June 14, 2017 at 8:30 AM

The big mover overnight was the GBP with the Pound recovering from recent falls to the tune of around 1.5% thanks to improved economic data released overnight. The data suggested strong core growth in everything from consumer prices and retail prices to even house prices which surged to an annualised growth rate of 5.6%. AUD/GBP as a result is also 1.5% lower or thereabouts and remains in what appears to be a bearish down trend. Time will tell if this continues however those clients with GBP exposures should monitor closely.

We have a ton of data out over the next 24 hours with local consumer sentiment figures released by Westpac at 10.30pm. This data is closely followed by Chinese industrial production numbers which have been on the improve lately. The big data release/announcement however is of course U.S CPI and Retail Sales figures along with the latest rate adjustment from the U.S Federal Reserve. Fed Chairwomen Janet Yellen is widely tipped to raise rates by 25 basis points once again which would take the U.S Fed Funds Rate to 1.25% just 25 basis points shy of the Aussie Cash Rate. Despite the move being priced into the market we should still see a bounce in the USD if the U.S Fed do indeed raise rates. This all happens at 4.00am AEST.

DATA RELEASES TODAY:

AUD - Westpac Consumer Sentiment at 10.30am

CNY - Industrial Production at midday AEST

GBP - Average Earnings Index at 6.30pm

USD - CPI & Retail Sales at 10.30pm

USD - Fed Funds Rate & FOMC Statement at 4.00am (tomorrow morning)

AUD EXCHANGE RATES:

AUD/USD – 0.7504

AUD/GBP – 0.5877

AUD/EUR – 0.6690

AUD/NZD – 1.0409

AUD/JPY – 82.637

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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