Morning Bulletin

Yesterday

The euro strengthened significantly yesterday following a strong GDP q/q figure from Germany. The quarterly expansion of 0.8% has adjusted the y/y rate to 2.8% from a revised 2.3% in Q2.
The euro rallied against sterling and the US dollar following the data release.
GBP/EUR fell by 0.7% after opening at 1.1236 and closing at 1.1158.
EUR/USD opened at 1.1667 and closed just shy of 1.18 at 1.1797 representing a 1.1% move.
UK inflation data came in slightly weaker than expected yesterday with CPI y/y coming in at 3% vs 3.1% expected and RPI y/y coming in at 4.0% vs 4.1% expected.
GBP/USD continued to trade within its recent range between 1.3060 and 1.3190 opening at 1.3114, trading a low of 1.3073 before strengthening to close at 1.3165.
US PPI m/m came stronger than expected at 0.4% vs 0.1% expected and Core PPI m/m also came in at 0.4% vs 0.2%.
German ZEW Economic sentiment came weaker than expected at 18.7 vs 19.8.

Overnight

Japanese preliminary GDP q/q came in weaker than expected at 0.3% vs 0.4%. GBP/JPY is currently trading 148.88.
Australian wages price index q/q was also weaker than anticipated coming in at 0.5% vs 0.7%. GBP/AUD is trading at its highest level since June, currently trading at 1.7374.

Today

The euro has continued to strengthen overnight following yesterday’s German GDP data.
At 9.30am we expect average earnings index 3m/y, claimant count change and unemployment rate from the UK.
Following that MPC member Broadbent is expected to speak at the LSE at 1pm.
At 1.30pm all attention turns to the US with inflation and retail sales data due at 1.30pm.