Despite data showing an unexpected fall in employment rate, Sterling has struggled in early trading. The ILO unemployment rate released this morning for 3 months to June, fell to 4.7% beating consensus forecasts of 4.8%. Average earnings for the same period also beat expectations. However, the pound has suffered, particularly against the dollar as “risk aversion” dominated far east and early European trading.


All eyes will be focused on Eurozone Gross Domestic Product (GDP) data released later this morning. Recent data for the Union has been mixed with Industrial production unexpectedly contracting in June, but on a positive note the trade balance posted a surplus of €12.4bln.


The Dollar has benefitted as risk aversion dominated recent trade sessions. The Taliban taking control of the Afghan capital, slowing Chinese growth at the start of the last quarter and tighter restrictions in Asia and Australasia to stop the spread of the Delta variant have prompted a flight into the safe haven currencies. Federal Reverse Chairman Jerome Powell is scheduled to speak this afternoon giving his verdict to teachers and students on the economy and monetary policy. US retail sales for July are released this afternoon.

Economic Calendar
10.00 am EUR GDP
13.30 pm US Retail sales
18.30 pm Fed’s Chair Powell speech