GBPUSD gains fragile with all eyes on upcoming Data.
Sterling traded off it’s 1.3185 5-month high yesterday with traders expecting further swings as we await a stimulus package from the US. Although sterling has appreciated against the dollar of late a sharp reversal could be expected if UK data does not meet expectation. The success sterling has seen against the greenback is on Dollar weakness, you only have to look at sterling’s stagnant performance against the euro to see that there is no clear bullish or bearish sentiment fort the pound.
The ONS have this morning announced that employment has decreased by 220k between May and July, the highest quarterly increase in over a decade. Adding unemployment has not surged as much as feared, because large numbers of firms have put employees on the government-backed furlough scheme. Economists warn that we will not see the full effects of unemployment until October when the government’s furlough scheme is curtailed.
There are no further top tier data releases today and attention will shift to the UK’s GDP data and CPI figures from the US.
|00:50||Bank Lending y/y||6.20%||6.20%|
|02:30||NAB Business Confidence||-||1|
|06:05||Economy Watchers Sentiment||40||38.8|
|07:00||Claimant Count Change||9.7K||-68.5K|
|07:00||Average Earnings Index 3m/y||1.20%||-0.30%|
|10:00||ZEW Economic Sentiment||55.3||59.6|
|10:00||German ZEW Economic Sentiment||57||59.3|
|11:00||NFIB Small Business Index||100.7||100.6|
|13:30||Core PPI m/m||0.10%||-0.30%|
|14:30||CB Leading Index m/m||-||-1.40%|
|All day||Mortgage Delinquencies||-||4.36%|
|23:45||Visitor Arrivals m/m||-||82.30%|