6th August 2018 Market Update
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?? GBP – Sterling dropped in early trade on Friday as Mark Carney commented that there is an uncomfortable high risk of Britain leaving the EU without a deal.
As the day progressed we saw the Pound attempt a fightback but nonetheless we come into this morning with the pound lower already.
No major data due out today and nor for most of the week until Friday where we see the latest Q2 GDP figures.
?? EUR – No data out from the Eurozone on Friday but this morning we have signs that the talk of trade wars is having an effect on Germany.
German factory orders dropped by 4% in June, the biggest fall in almost 18 months. The reason for the fall? Weaker overseas demand with orders outside the Eurozone dropping by 5.9%.
In general though, important data flows out of the Eurozone continue to be at a minimum with the main factor of Euro movements being the ECB action on monetary policy.
?? USD – The Dollar remained firm as the unemployment rate and wage growth improved in the US. Whilst the nonfarm payroll print fell shy of expectations, the trend for job growth remains positive and continues to support the expectations of two further rate hikes this year.
No major data out today but investors’ attention will probably turn to the China-US trade tensions after China imposed US$60bn retaliatory tariffs on US imports on Friday.
No key announcements today.
Summary: US job figures add to the continuing positive sentiment in the US Dollar and Mark Carney’s doubts of a Brexit deal added woes to the Pound.
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