UK Bi-Election and Threats to 1,700 Welsh Jobs.

Voters are going to the polls in Peterborough today in a by-election. The marginal seat of Peterborough had been held for Labour by Fiona Onasanya but by-election was triggered after she was jailed for lying about a speeding offence. After being suspended by the Labour Party, Onasanya was forced out as MP after voters signed a petition triggering a by-election. Although this is only a marginal seat this vote is being closely watched to see if Nigel Farage’s new Brexit Party can gain its first parliamentary seat after their success in the European Elections.

Fears are growing in the UK that car manufacturer Ford will close their Bridgend plant. The Welsh plant which opened in 1980 currently employs 1,700 people and there will be a meeting between Ford Europe, bosses from the United States and union leaders at its Essex headquarters today. If the decision is made to close the plant it has been suggested that Brexit would not be the only reason however, Pontypridd MP Owen Smith said yesterday “does any Brexiter want to tell me that it isn’t a factor in the loss of 1,500 jobs in S. Wales.”

With a busy day of data releases following BoE’s Governor Carney speech at 10:00AM including Eurozone GDP, ECB Rate Decision and ECB Monetary Policy Statement there could be some triggers to move the currency markets away from their current levels.

Whilst US President Donald Trump continues his European state visits he was quoted as saying Mexico has to “step up to the plate,” regarding the threatened US-Mexico trade tariffs surrounding immigration. Although it appears progress has been made the American President has outlined that Mexico needs to do more.

Economic Calendar

09:0009:00 GBP BoE's Governor Carney speech--
09:00EUR Gross Domestic Product s.a. (YoY) (Q1)1.2%1.2%
09:0EUR Gross Domestic Product s.a. (QoQ) (Q1)0.4%0.4%
11:45EUR ECB Deposit Rate Decision-0.4%-0.4%
11:45EUR ECB Interest Rate Decision0%0%
12:30USD Trade Balance (Apr)$-50.7B$-50.0B
12:30USD Continuing Jobless Claims (May 24)1.660M1.657M
12:30USD Initial Jobless Claims (May 31)215K215K
12:30USD Nonfarm Productivity (Q1)3.5%3.6%
12:30USD Unit Labor Costs (Q1)-0.8%-0.9%
12:30EUR ECB Monetary Policy Statement and Press Conference SPEECH REPORT--
12:30International Merchandise Trade (Apr)$-2.80B$-3.21B
12:40USD Fed's Kaplan speech--
14:00CAD Ivey Purchasing Managers Index (May)56.256.7
14:0042m CAD Ivey Purchasing Managers Index s.a (May)56.755.9
17:00USD Fed's Williams speech--

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.