The UK’s data print this morning gave an overall positive outlook, for the short term at least providing a little boost to the Pound, with the GDP released at 0.4% surpassing expectations showing upside. This set of data will come as a relief for Rachel Reeves, who is struggling to gain confidence in the UK economy and attract investors, however this positive data comes after a poor run of results and would need prints following this to show any form of economic change.
Todays print will also provide a little relief to the Bank of England and their concerns on whether another interest rate cut is needed next month, although looking at the vote split from last week it wasn’t unanimous and 2 members wanted to take a more aggressive stance.
Sterling remains strong in the market after the boost this morning but is still in a tight trading range against the Euro and US Dollar, at least for now.
Across the Atlantic it has also been busy with Fed Chair Jerome Powell testifying, Trump talking to Putin and the inflation print released yesterday.
Powell made comments that progress had been made to combat inflation however they are not quite there yet, in having it under control.
President Trump and President Putin had what was deemed a ‘highly productive phone call’ and could soon see peace talks between Russia and Ukraine, with Trump looking like the mediator, markets will look for any developments with this situation but nothing else has really made headlines.
The US inflation print yesterday showed yet more upside in the States economy, beating markets expectations again, although this showed strength, the Dollar remains in a tight battle with the Pound in trading ranges.
Dollar remains strong overall with retail sales data due out tomorrow.
-Oakleigh Exchange Partners-