Daily Update – 15th August 2019
• EUR Gross Domestic Products, Industrial Production • GBP Consumer Price Index The Euro declined against the U.S. dollar on Wednsday, as global recession fears grew, with the U.S. Treasury yield curve inverting for the first time since 2007 and Germany reporting that its economy had shrunk in the second quarter. Germany’s gross domestic product fell 0.1% quarter-on- quarter after growing 0.4% in the first quarter, the latest sign that world trade disputes are damaging Europe’s biggest economy. The US didn’t release relevant data, but all hell broke loose when the yield-curve between the 10-year yield and that of the 2-year bond inverted, understood as a sign of an upcoming recession. The pound edged higher against dollar on Wednesday after inflation picked up in July, but the currency held within sight of a two-and-a-half year low as brewing concerns about a no-deal Brexit weighed on investor sentiment. The numbers reinforced the market’s belief that the bank of England won’t cut rates, as employment readings released Tuesday suggested so. • EUR Assumption Day (Market Closed) • GBP Retail Sales • USD Jobless Claims This Thursday, several European countries will observe the Assumption Day Holiday, which means there won’t be relevant data releases. The kingdom will release this Thursday, July Retail Sales. The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Yesterday's Focus
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