Throughout trading yesterday, we saw very little movement between the main currency pairs. Little to no big announcements from the data calendar setting up for what could potentially be the busiest week in August for UK economic data. The pound fluctuated just 0.07% against both USD and EUR in yesterday’s trading. This morning we saw the unemployment rate fall to 4.7% in June, 0.1% better than the market expected. In the same report we saw an estimated 953k job vacancies in May to July 2021. This data will surly ease some fears that the Bank of England had and back up the initial predictions for an interest rate rise in 2022.
The ongoing geopolitical developments in Afghanistan and the continued spread of the Delta-variant worldwide may start the move to safe-haven currencies. The USD is up against all major currency pairs in the last 24 hours except for the Swiss Franc and Japanese Yen (safe haven currency’s themselves). The likelihood of GBPUSD breaking through the 1.40 barrier may be on hold for now.
Today, we have Eurozone GDP figures out at 10am with 2% growth expected for Q2. After that, we have US retail sales for July, which is expected to be negative following the pattern from the previous months where we see a positive number one month followed by a negative one.
Have a great day.
Josh Saunders, Senior Relationship Manager.
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