- At the risk of sounding like a broken record there was a distinct lack of data once again yesterday.
- UK GDP came in as expected yesterday morning. The second quarter print showed the economy grew by just 0.3%over the 3 months to June, up slightly from an equally sluggish 0.2% in the first quarter.
- According to UK Chancellor Hammond this disappointing growth is down to the inflationary hit consumers have faced following the post-referendum slump in the Pound.
- Sterling had actually made some solid ground in FX space throughout the morning and prior to this GDP print, but remained largely unmoved off the back of the figure.
- UK BBA Mortgage Approvals 40.2K (39.9K Exp)
- US New Home Sales 610K (615K Exp)
- According to ECB member Nowotny the central bank has begun talks about future tightening of policy, adding that reducing the intensity of stimulus would be reasonable.
- The US Dollar is firmly on the back-foot in FX space this morning following yesterday evening’s FOMC rate decision and statement.
- The FOMC kept rates on hold at <1.25% as expected, however the accompanying statement was adjudged to be ‘dovish’ by markets and traders leading to the decline of the Dollar.
- Of particular concern was the slight tweak to inflation language, with the statement adding they expect inflation to stay below 2% in the near term.
- GBP/USD Subsequently hit a 10 month high of 1.3157, whilst EUR/USD hit a fresh 2 and a half year high of 1.1776.
- Australia Import Prices q/q -0.1% (0.7% Exp)
- Spanish Unemployment Rate 17.2% (17.8% Exp)
- Eurozone M3 Money supply is the key print this morning at 9am.
- This afternoon is dominated by US economic data, with Durable Goods Orders and Unemployment Claims headlining at 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.00||EUR||M3 Money Supply y/y||5.0%||5.0%|
|11.00||GBP||CBI Realised Sales||10||12|
|13.30||USD||Core Durable Goods Orders m/m||0.4%||0.3%|
|13.30||USD||Goods Trade Balance||-65.0Bn||-65.9Bn|
|13.30||USD||Prelim Wholesale Inventories m/m||0.3%||0.4%|