Majors being confined to narrow trading ranges

GBP
On the data front, UK retail sales climbed last month on the back of demand for summer clothing and picnic food during the hot weather, but the record high inflation is masking a much larger drop in volumes.

Retail sales increased by 2.3% in July, ending three consecutive months of decline.
However, the figures are not adjusted for inflation, which the BRC said was running among its at highest since 2008 as the cost-of-living crisis continues to hit UK households.

Sales improved in July as the heatwave boosted sales of hot weather essentials. Summer clothing, picnic treats, and electric fans all benefited from the record temperatures as consumers made the most of the sunshine.

USD
In the US, the key release of the week will be tomorrow’s update for CPI inflation. Ahead of that, today’s releases are forecast to show a big fall in productivity in Q2, due to the combination of falling GDP and strong employment and a resulting large rise in unit labour costs.

Meanwhile, the NFIB small business survey for July may provide insights into trends in a key segment of the economy.

EUR
Currency-wise, the action was uneventful against the backdrop of a sparse data calendar. This was evident in the majors being confined to narrow trading ranges throughout the day.

This pattern has continued in overnight trading. Of the limited action to register, the euro has managed to edge slightly higher over the past 24 hours.
If you or your company are impacted by currency risk please reach out to speak to one of our experts, we can assist with decision-making during this difficult time to help you protect your profits.