GBP
The British Pound was supported near recent levels against both the Euro and Dollar this morning following the release of some better-than-expected UK GDP data that suggests The UK’s economy contracted by 0.1% in the second quarter.
In June, GDP fell by 0.6%, services fell by 0.5%, manufacturing by 1.6% and construction by 1.4%, the Office for National Statistics reported.
Nevertheless, the UK’s economic performance was worse in the second quarter than that of nations like Canada, Italy, France, and Germany, with underlying data showing that economic pressures were beginning to take hold on consumer spending.
USD
The past few days have seen some welcome news on the US inflation front. Most notably, on Wednesday, the latest US CPI print, saw the headline rate drop from 9.1% in June to 8.5% in July, softer than market expectations of a fall to 8.7%.
Later this afternoon, the University of Michigan will be releasing its preliminary estimate for July US consumer sentiment, which is forecasted to show a modest improvement from 51.5 in July to 52.0 The report will also provide a gauge on US consumers’ expectations for inflation 1yr ahead and 5-10yrs ahead.
EUR
In the eurozone, the latest industrial production report is due this morning. Already released regional reports from Spain, Italy, Germany and France have been better than expected and point to upside risks to the market consensus expectation of a 0.2% rise.
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.