UK Economy Steady with 0.6% Growth; U.S. Retail Sales Up Next
UK’s Q2 GDP growth of 0.6% QoQ came in line with expectations. The sterling number reflects the stable performance of the economy in the UK.
Later today, the July U.S. Retail Sales data will be released at 1:30 PM GMT. These are expected to rise by 0.2% on month. This figure would give clues as to how consumer spending in the U.S. is faring
Usually viewed as one of the engines of activity in the economy. A better result could strengthen the U.S. dollar, while a weaker figure would encourage a softer greenback.
Major Currency Pairs
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EUR/USD: Keeps firm above 1.1012, the euro pressured by economic challenges from within the Eurozone.
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GBP/USD: Holds above 1.2800 after the GDP release as traders await the U.S. data for further directions.
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USD/JPY: Trends higher near 147.00, supported by policy divergence between the US Federal Reserve and the Bank of Japan.
Commodities
Oil: WTI Crude Oil is going downhill and now trades at approximately $75.90. The reason behind the fall is less worry over supply, as US oil inventories are growing, and central banks in most countries are brushing off rising geopolitical tensions in the Middle East.
Gold: Gold is facing some resistance near $2,470 per ounce after finding support above the $2,450 level. The price action of the precious metal seems very sensitive to upcoming releases of the U.S. retail sales and jobless claims data, which looks to set a bias for whether it can break this resistant level.
Political News
In the UK, the political landscape is dominated by ongoing unrest and riots, particularly in areas hit hard by economic disparities and immigration issues. There are growing concerns over public safety, especially among minority politicians, amid these tensions.
In the U.S., the political focus is on the upcoming Jackson Hole Symposium, where Fed Chair Jerome Powell is expected to outline the Fed’s next moves, which could have broad implications for the markets.