Money News Overview Thursday 8th August: Currency markets stabilise overnight

Over the weekend, there has been little movement in the currency market with the pound still sitting close to its highest level against the euro.

There is no UK or EU data in the calendar today, so attention will turn to US releases.

US unemployment claims is set to slightly fall from Friday’s highest release this year to 240k. The number of people continuing unemployment claims is expected to remain inflated at 1.87 million. 

Global markets have seemed to stabilise mid-week, following the volatile movement last Friday that pointed the US economy towards a recession.

This week has been quiet in terms of key economic data releases. Investors will now be looking forward to next week, when we have the highly anticipated UK CPI inflation reading.

UK inflation held at the Bank of England’s target level of 2 percent in May and June. However, there are other concerns about underlying inflation, such as services inflation which remains high.

Employment figures (earnings & unemployment rate), Gross Domestic Product and Industrial production will be closely watched next week to see how the UK economy is fairing.

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