Money News Overview Thursday 31st August 2023

All eyes are on the Bank of England, which is widely expected to hold interest rates steady.

On the currency front, the dollar remained under pressure, with the drop in Treasury yields proving unfavourable to the greenback.


Yesterday, the dollar lost territory against the euro, pound, and yen. Sterling was retaining a somewhat firmer tone on the exchanges.


In terms of data, the second estimate of US GDP in Q2 was revised down to 2.1% annualised, compared to a first estimate of 2.4%. Meanwhile, the ADP employment data came in lower than expected, with employment increasing by 177k in August (vs. 195k expected). However, the ADP data has historically been a poor predictor of the official payroll figure (Due this Friday).
Today’s data highlights will include US core-PCE inflation for July and Eurozone flash HICP inflation for August. Core-PCE is expected to rise somewhat, while HICP is expected to fall further. If the data surprises compared to expectations, currency markets may experience some volatility. Labour market data from the United States and Europe are also due.

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