Sterling opens relatively unchanged after a quiet end to the week on the data front. Wednesday’s daily virus count, jumping to 30,838, combined with renewed post-Brexit woes have kept a cap on GBP’s gains. The Independent reported the UK’s head of the Co-op supermarket as saying, “Britain’s post-Brexit supply chain crisis could ‘cancel Christmas’ and continue to cause food shortages well into 2022.” Sterling remains cautious on this.
The European Central Bank (ECB) flashed mixed economic signals and German IFO statistics also indicated sluggish sentiment in the bloc’s largest economy, on Wednesday. ECB Vice President Luis de Guindos said yesterday, “In a few days, the ECB will release its economic forecasts again, every time we have updated it has been for the better and this may happen again”. This, combined with a slightly weaker USD, has seen the EUR open in line with a 1 week high against the USD.
On Wednesday, US Durable Goods beat estimates in July, coming in at -0.1% vs -0.3% expected. Despite this, investors remain focused on an update on US GDP and jobless claims on Thursday ahead of a speech by the Fed’s Powell on Friday. The central bank’s much-watched Jackson Hole Symposium, which kicks off today, had to be held virtually due to rising US Covid cases. As a result of this, the market expect him to refrain from hinting about imminent tapering of the Fed’s $120 billion/month program.
13:30 pm US Initial Jobless Claims (Aug 20)
13:30 pm US GDP Annualized (Q2)
15:00 pm Jackson Hole Symposium