- UK Inflation rose for the first time in 2018 during July, according to figures from the ONS. The Consumer Price Index rose 2.5% during July, that was up from 2.4% in the previous 3 months. This won’t be welcome news for consumers as once again Inflation is keeping pace with average earnings and squeezing household spending.
- There were also a raft of other UK inflation numbers released at the same time yesterday morning which included:
- Producer Price Index (Input) m/m 0.5% (0.1% Exp)
- Retail Price Index y/y 3.2% (3.4% Exp)
- House Price Index y/y 3.0% (2.7% Exp)
- The pound was largely unmoved off the back of the data.
- US economic data dominated the afternoon and whilst the data was mixed on the whole, the key Retail Sales print impressed with a 0.5% increase reported for the month of July. That was far better than the 0.1% rise expected, and means US Retail Sales have increased by 6.4% over the past 12 months.
- Some of the other US figures released included:
- Empire State Manufacturing Index 25.6 (20.1 Exp)
- Industrial Production m/m 0.1% (0.3% Exp)
- Business Inventories m/m 0.1% (0.2% Exp)
- Shortly after the US data was released GBP/USD plummeted to a fresh 14-month low of 1.2661 before recovering to close the day around the 1.2700 handle.
- The Turkish Lira found some respite late yesterday afternoon as it emerged Qatar is prepared to invest $15 billion into the country, that followed talks between Turkish President Erdogan and Qatar’s Sheikh Temim bin Hamed Al Sani.
- The Aussie Dollar is on the back-foot this morning following some mixed employment data for July. Similar to the UK a couple of days ago the official unemployment rate has dropped, however there was a big miss on the number of people employed during the previous month:
- Australia Employment Change -3.9K (15.0K Exp)
- Australia Unemployment Rate 5.3% (5.4% Exp)
- Japan Trade Balance -0.05Tn (0.02Tn Exp)
- UK Retail Sales for the month of July is the key print this morning. Sales are expected to have risen a steady 0.2% m/m.
- Raft of US data this afternoon but nothing particularly high impact.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.30||GBP||Retail Sales m/m||0.2%||-0.5%|
|13.30||CAD||Manufacturing Sales m/m||1.0%||1.4%|
|13.30||USD||Philly Fed Manufacturing Index||21.9||25.7|