Green shoots of recovery
Some surprisingly positive data here in the UK, as manufacturing, construction and services figures came through at their highest level since 2006. The July figures outstrip June and certainly make up for the contraction we saw in May. If these levels of growth continue we should start to see a rise in both job numbers and wages in the coming months.
On the back of all this positive data we now see Sterling nudging the 1.54 dollar mark and again looking towards the Euro 1.16 figure. Eyes will now be on tomorrow morning’s UK inflation report which is forecast to come in a little higher than expected but hopefully not high enough to cast a cloud over today’s euphoria.
The Reserve Bank of Australia cut the Aussie dollar rate to 2.5% as expected and we have seen a small correction of a cent or more with GBP/AUD now trading around 1.7100. Chinese output data will likely remain the most influential driver for the Aussie dollar going forward.
So GBP/EUR now trading at 1.1585. GBP/USD at 1.5380 and EUR/USD now standing at 1.3275.