Mid-week report Report 29th - 31st August
Overnight, the UK British Retail consortium shop price index edged up 0.1% compared to a year ago in August, following a 0.3% fall in July.
Today has a light data calendar with nothing of note in the UK or the Eurozone. In the US, the second reading for Q2 GDP growth is not expected to be revised significantly from the initial estimate of 4.1% annualised quarterly growth. Recent data point to the possibility of a modest downward revision to consumer spending but that may be offset by an upward revisions to the contribution from business investment and net exports.
Most major currency crosses were little changed yesterday. Richard Clarida has been confirmed as the new Vice-chairman of the US Federal Reserve and he will probably vote at the next interest rate setting meeting In September. He seems to support the policy of further gradual rate hikes but expects them to peak at a relatively low level. Sterling is currently trading close to $1.29 against the US dollar as Brexit negotiations remain a key focus. Reports overnight suggest that both sides now think that an agreement by the October EU summit is unlikely but hope to finalize terms by mid-November.