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Dollar, Oil and FTSE index on the podium, for now

Dollar, Oil and FTSE index on the podium, for now

Yesterday Sterling witnessed renewed selling pressure, reaching four-week lows against both the Dollar and the Euro. GBPUSD fell below 1.3000, but managed to bounce back briefly before the US trading session opened. Overnight, the Pound has consolidated below the 1.3000 level against the Dollar and GBPUSD opened at 1.2957 this morning.

The lack of economic data releases from the UK through to the end of the week has meant that Sterling has been led by releases from elsewhere. Next week will see the publication of a string of official data releases on inflation, the labour market and retail sales, which will give the Pound some solid direction.

In the States, Initial Jobless Claims printed pretty near expectations at 266K. The data further reinforced last week’s strong employment report. The Import Price Index for the month of July unexpectedly rose by 0.1% and June’s figure was also revised upwards to 0.6%. This data has kept the slim hopes of an eventual Fed rate hike in 2016 alive and could now provide some respite for the Greenback.

Monthly retail sales and consumer confidence data will headline today, with Core PPI data and the Reuters/University of Michigan Consumer Sentiment to follow. Strong data from the United States will compound Cable’s four-week lows further.

The Euro capped off a successful week versus the Pound as it made gains of 0.18% during yesterday’s European trading session. The single currency recorded its fifth straight day of gains against the Pound as it ended the day around the 1.1626 levels. Volatility is expected to be high during today’s session, however, as we have the Eurozone GDP Q2 figures due with consensus set at the 1.6% mark.

Data to watch: 7am German Consumer Price Index. 10am Euro GDP Q2, June Industrial Production. 1.30pm US July Retail Sales.

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