UK Q2 GDP rises 0.7%, matches expectations
Key Notes:
- UK Q2 GDP Preliminary estimates 0.7% vs. 0.7%
- UK GDP y/y 2.6% vs. 2.6%
- UK Index of services 3m/3m 0.4% vs. 0.5%; Index of services m/m 0.3% vs. 0.3%
- Canada IPPI m/m 0.5% vs. 0.4%; RMPI m/m 0.0% vs. 1.0%
- US S&P/CS 20 City HPI m/m -0.2% vs. 0.3%; y/y 4.9% vs. 5.6%
Later
- US PMI services
- US Consumer Confidence
The Asian markets were relatively quiet with no major events. The Chinese equity markets managed to stablize after the sharp fall earlier in the week. The Yen weakened earlier today after posting lows of 123.11 and surged to trading above 123.5. The currency however remains range bound within yesterday’s high and low and is likely to stay flat into tomorrow’s FOMC meeting. The commodity risk currencies, the Kiwi and the Aussie were trading in the positive. The Kiwi especially continued to post gains against the Greenback, posting a 3 day highs near 0.6672. The Aussie was however more subdued trading sideways for the most part after posting daily session lows below 0.727.
The European markets opened with the Euro weakening since the open. EURUSD briefly traded near the opening highs of 1.1093 before gradually declining near the lows of 1.1029. The currency however remains well supported above the 1.10 psychological level of support/resistance. The European markets were quiet with no major economic data on tap today.
From the UK, the second quarter GDP saw the UK economic rise at a pace of 0.7% as expected. The pace of growth was up from 0.4% during the first quarter. On an annualized basis, UK GDP grew at a pace of 2.6% as expected. The index of services however grew at a slower pace, rising only 0.4% against estimates of 0.5%. The British Pound saw a muted reaction to the Greenback on the news as the Cable briefly dipped to daily lows near 1.553 before rallying towards highs of 1.5615.
In the US trading session, Canada’s IPPI and Raw Materials price index data saw a mixed number with the IPPI rising 0.5% beating estimates of 0.4% while the RMPI was flat at 0%. The Canadian Dollar was trading flat as USDCAD stays within yesterday’s range high and low.
US economic data today saw the S&P/Case Shiller House price index, which disappointed. On a monthly basis the S&P/CS HPI fell -0.2%, while on an annualized basis the housing price index grew at a slowe pace of 4.9%, below estimates of 5.6%.
The US Dollar Index was however trading stronger during the day after the Index fell to lows of 96.25 before managing to rise to daily session highs above 96.5. Later in the evening, the US services PMI and Consumer confidence data will be released.
