Yesterday, the major currency pairs were restricted to very narrow ranges. This was not surprising given that, other from the 7 a.m. distribution of an accumulation of UK labour market data, the remainder of Tuesday’s macroeconomic diary was quiet.
Today’s macro calendar includes multiple significant updates. Indeed, the UK GDP data for July has been published this morning. The GDP fell by 0.5% in the month, falling short of forecasts for a 0.2% drop. Sterling is still on the defensive this morning because of the poor GDP figures.
We’ll have US CPI inflation figures for August later today. The data will be a major input into the Fed’s policy talks next week (September 19th/20th). The consensus anticipates that headline inflation will rise from 3.2% to 3.6%. Meanwhile, the core rate will be reduced from 4.7% to 4.3%.