UK Economy Shrinks 0.1% in January Amid Mixed Signals
Weak UK GDP data, mixed German inflation figures, and upcoming U.S. consumer sentiment readings. The British economy showed unexpected weakness in January, while inflation in Germany continues to slow. Meanwhile, oil prices rebound, gold remains firm, and the U.S. dollar trades mixed.
Key Data Out Today
- 07:00 GBP: Gross Domestic Product (MoM) (Jan) – Actual: -0.1% vs. Consensus: 0.1%
- 07:00 GBP: Industrial Production (MoM) (Jan) – Actual: -0.9% vs. Consensus: -0.1%
- 07:00 GBP: Manufacturing Production (MoM) (Jan) – Actual: -1.1% vs. Consensus: 0%
- 07:00 GBP: Consumer Inflation Expectations – Previous: 3%
- 13:15 EUR: ECB’s Cipollone speech
Commodities
- Crude Oil (WTI): $67.42 per barrel (↑1.30%) – Oil prices have risen, reflecting improved market sentiment and a weaker U.S. dollar.
- Brent Crude: $70.67 per barrel (↑1.13%) – Brent crude follows a similar upward trend, supported by easing supply concerns.
- Gold: $2,990.79 per troy ounce (↑0.15%) – Gold continues its ascent, reaching record highs as investors seek safe-haven assets amid ongoing trade uncertainties. reuters.com
- Silver: $33.95 per troy ounce (↑0.28%) – Silver prices have increased, benefiting from the broader rally in precious metals.
Currency Movements
EUR/USD (1.0850, ↓0.02%)
The euro is slightly lower against the dollar, with investors cautious ahead of U.S. consumer sentiment data.
GBP/USD (1.2935, ↓0.12%)
The pound has edged down, influenced by recent data showing a 0.1% contraction in the UK economy for January. theguardian.com
AUD/USD (0.6308, ↑0.37%)
The Australian dollar has strengthened, supported by rising commodity prices and improved risk appetite.
NZD/USD (0.5726, ↑0.53%)
The New Zealand dollar has gained, reflecting broader market optimism.
USD/JPY (148.85, ↑0.70%)
The yen has weakened against the dollar, as reduced demand for safe-haven currencies accompanies the market rebound.
USD/CNY (7.2337, ↓0.20%)
The yuan has appreciated, bolstered by China’s commitment to boosting consumer spending. Associated Press+1usnews.com+
USD/CHF (0.8835, ↑0.08%)
The Swiss franc shows slight depreciation, moving in line with other safe-haven assets.
USD/CAD (1.4416, ↓0.16%)
The Canadian dollar has strengthened, benefiting from higher oil prices.
USD/MXN (20.0337, ↓0.26%)
The Mexican peso has gained, reflecting increased investor confidence in emerging markets.
USD/INR (86.9590, ↑0.04%)
The Indian rupee remains relatively stable, with minimal movement against the dollar.
Market Outlook
Investors are closely monitoring the upcoming release of the University of Michigan’s Consumer Sentiment Index, which is expected to show a slight decline to 63.2 from the previous 65.7. This data will provide insights into consumer confidence amid ongoing trade tensions and market volatility. Additionally, China’s recent measures to boost consumer spending have positively impacted Asian markets, contributing to the global relief rally. However, caution remains as potential tariff escalations continue to pose risks to global economic stability. marketwatch.com barrons.com reuters.com