24th August 2017 Market Update
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?? GBP – Sterling fell briefly towards its lowest level of 2017 for the first time since late June on Wednesday and deepened its recent losses against the single currency, as gloom over the UK’s economic prospects and the Brexit process encouraged investors to push Sterling lower.
The pound has fallen more than three cents against the greenback and four cents against the single currency since the start of August as a result of continued concerns surrounding the ongoing lack of clarity in regards to the UK and EU, when it comes to any Brexit deal.
In relation data yesterday we had nothing to report on, though today we see the GDP growth numbers which will be released at 9:30am. Any movement from what is expected could see some volatility.
?? EUR – From the Eurozone on Wednesday the single currency edged higher against the US dollar, after Mario Draghi defended quantitative easing and forward guidance, but warned of further challenges. In the way of data, France saw its manufacturing sector move higher in August but services disappoint, whilst Germany are powering ahead. From the Eurozone today we have no major data out to report.
?? USD – From across the Atlantic, the US dollar traded lower though much of this ws due to a stronger euro, rather than a weaker dollar. All investors today and on Friday will now focus their attention towards the upcoming Jackson Hole meeting where central bankers and leading figures meet to discuss recent economic events. From the United States, the only piece of data we have comes in the form of the initial jobless claims.
?? – 09:30am – UK GDP YoY. 1.7% – 1.7%.
09:30am – UK GDP QoQ. 0.3% – 0.3%.
?? – 13:30pm – U.S Jobless claims 238,000 – 232,000.
Our View: The pound firmly remains under pressure against both the euro and US dollar, amid continued Brexit talks which are seemly going nowhere. If no clear signals are given from the EU the pound may continue to trade even lower in the coming weeks.
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