Morning Report: 10 November 2015

10th November 2015 By: Ranko Berich

GBP Stabilisation was the main theme of yesterday, as sterling regained some of its losses against USD while advancing against the euro. Fundamental data was light on the ground for sterling, but this morning did see the release of the British Retail Consortium’s Retail Sales Monitor, which showed a 0.2% contraction in year on year retail sales, down from 2.6% previously. Hopes of a blowout on Black Friday had dampened sales last month, and this dip could be reversed if last year’s bonanza is repeated. Deloitte’s Crane Survey was in the newspapers this morning after it showed office building in London at a seven year high, consistent with the sustained boom in the city’s real estate sector.

EUR The euro managed to stem its losses against the US dollar yesterday but weakened to sterling. German Trade Data for September showed a slight dip in the total Trade Surplus, despite a powerful surge in exports. Sentix Investor Confidence, a sentiment survey of investors and analysts, showed a slight but noticeable improvement in expectations of growth among those surveyed, suggesting the eurozone’s recovery may be back on track. This morning has already seen the release of French Industrial Production data, which showed production up 1.8% year on year in September.

USD After making rapid gains on Friday the US dollar paused somewhat yesterday, amid a paucity of market moving data. The Federal Reserve’s Labour Market Conditions index rose to 1.6 in October, mostly representing the exceptionally strong performance of non-farm payrolls. The Index is an amalgamation of 19 labour market indicators designed to estimate the current state of the labour market. The US data calendar begins to pick up again today, beginning with the NFIB Small Businexx Index at 11:00 GMT. Import Prices will be released at 13:30, followed by Wholesale Inventories at 15:00.

CAD USDCAD drifted downwards yesterday, as the loonie began to claw back some of Friday’s losses. Monthly Housing Starts were 198,000, slightly below the levels seen in recent months. Today at 17:00, the Bank of Canada’s Carolyn Wilkins will speak in Toronto.

UK News

  • Reuters. UK retail sales growth cools in October – BRC: British retail sales growth cooled last month, marking the weakest performance for the month of October since 2008, according to a survey from the British Retail Consortium on Tuesday.
  • FT. London office construction reaches seven-year high: The amount of office space being built in central London has risen by a fifth in six months, says a Deloitte report, lifting construction levels to a seven-year high.