Eurozone economic sentiment soared to a 10-year high in July.
Eurozone economic sentiment rose to 111.2 in July from 111.1 the month prior, a level we haven’t seen since 2007. Service providers and constructors led gains while the manufacturing sector remained flat. In contrast, confidence amongst consumers and retailers fell.
German inflation also beat estimates, checking in at 1.7 percent year-over-year. Great figures for the Eurozone’s largest economy, which could also bode well for their overall CPI print due Monday.
US second quarter growth disappointed Friday, coming in at 2.6 percent versus the 2.7 percent analysts were looking for. Q1 growth was also revised down to 1.2 percent due to a drag from inventories.
On the bright side, there was an upward revision to past figures, with 2015 clocking the strongest economic growth in ten years. The Bureau of Economic Analysis said the economy grew 2.9 percent in 2015, the best print since 2005. However, momentum noticeably dropped off in 2016. Economic expansion notching its weakest performance since the recession.
Overall, the revisions do not change current conditions. Investors are focusing on Q2 figures, which isn’t doing the dollar any favors.
Canadian GDP surprised to the upside, lifting CAD almost a cent higher versus the greenback.
The resounding defeat of healthcare reform is echoing through the halls of Washington today.
Another push for overhauling healthcare in the Senate was shot down once again. The so-called “skinny repeal” proposition to overhaul the Affordable Care Act failed by a vote of 51 to 49. A dramatic return to the Senate this week after being diagnosed with brain cancer, Senator John McCain dealt the decisive final blow, joining Lisa Murkowski and Susan Collins in voting “no” on repeal.
Speaking after the vote, Senate majority leader Mitch McConnell said “it’s time for our friends on the other side to tell us what they have in mind, and we’ll see how the American people feel about their ideas,” suggesting that Congress move on from healthcare,
Minority Leader Chuck Schumer also spoke following the vote, focusing on improving the existing healthcare legislation instead of chucking it out the window. This marks another failure for the Trump administration, which has failed to push through meaningful legislation in its first six months, despite a Republican majority in both houses of Congress
EURUSD: Euro higher after another rounds of strong and steady economic data out of the Eurozone.
GBPUSD: Sterling slightly up against the USD, but nothing too substantial in light of the drop we saw yesterday.
AUDUSD: Aussie dollar higher as the greenback remains broadly weaker Friday morning.
USDCAD: Canadian dollar loving stronger-than expected growth figures this morning, pushing USD/CAD near a two-year low.
USDJPY: Yen a touch higher versus USD this morning as the dollar continues to trade lower after weaker than expected GDP growth.