GBP

Sterling has remained steady in early trading after the UK monthly GDP data released this morning showed that the economy had expanded by 1% month on month in June, above the 0.8% forecasts by analysts. This was accompanied by stronger than expected manufacturing and industrial data, also for June. However, the positive readings were offset by an increase in the UK trade deficit for the same period. UK chancellor Rishi Sunak said the economy is recovering very strongly in response to the mixed data.

EUR

Support for the EUR against the Dollar at March’s low of 1.1705 remains intact despite looking under pressure for most of this week. The single currency found buyers after the US consumer price index released yesterday, jumped 0.5% month on month, keeping the annual rate of gains at 5.4%.

USD

The dollar remains on the back foot across the board as US bond yields slipped in Wednesday evening’s auction. The bond yields fall came after weaker than expected inflation data released yesterday, has for now lifted pressure on the Federal Reserve Bank to taper their bond buying scheme.

Economic Calendar

10:00 am EUR industrial production

1:30 pm US PPI index

1:30 pm US initial Jobless claims