Spreadex Market Update
Sterling suffers data shock, as UK current account deficit widens and Q2 GDP falls
"Looking to this afternoon and the day’s steady stream of data is set to continue through the US session."
This only exacerbated the pound’s poor start, with the currency ignoring Carney’s claim that interest rates could rise ‘in the coming months’ to instead focus on the disappointing data. Cable dropped more than half a percent, forcing it back towards $1.337, while against the euro sterling fell 0.7% despite the Eurozone inflation figure underperforming expectations, eroding much of the week’s 2 and a half month high-hitting growth. This meant the FTSE could finally open up some ground between it and the 7300 mark, climbing 50 points to tease 7375, its best price for more than a fortnight.
Even with the euro’s substantial gains – the currency also rose 0.2% against the dollar – the Eurozone indices found room for growth. The CAC pushed 0.2% higher, while the DAX hit yet another fresh 3 month peak with a 12750-grazing 50 point rise.
Looking to this afternoon and the day’s steady stream of data is set to continue through the US session. With the Fed eyeing a rate hike, investors will be interested to see if the core PCE price index delivers on the expected jump from 0.1% to 0.2% month-on-month. Elsewhere there are the latest personal spending, Chicago PMI and revised UoM consumer sentiment readings.
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