The Pressure Remains on Draghi
It was a good day for Sterling yesterday as it reached a 2 week high against the Euro. This was due to a number of factors, with more bad news out of the Eurozone.
A Never-Ending Circle
Eurozone economic and industrial sentiment were weaker than expected, as German retail sales dropped 1.4% in July when a rise of 0.1% was expected. The pressure remains on Mario Draghi, and rumours abound that he is asking the European Governments to help him out with changes to their fiscal policy as there is only so much monetary policy can do. Sometimes it feels like this Eurozone crisis is a never ending circle and every so often there appears to be a bit of light at the end of the tunnel but it never quite gets there.
Something which doesn’t appear to have any effect on the Pound at the moment is the Scottish Independence vote. Even though the Pound appears to be at the centre of the debate, the markets are appearing to dismiss the significance on the Pound.
This morning has already seen better than expected figures out of the UK for nationwide house prices and we are expecting a decent amount of data before the US takes Monday off for Labour Day. As readers may know, this is my favourite US holiday. A day off work to celebrate work….
Headlining today are CPI data from Europe, CPI and GDP from Italy, GDP from Canada, Core Personal Consumption Expenditure, personal income, personal spending and Chicago PMI from the US.