Market Brief: UK GDP Surprise Underpins Pound
Fawad Razaqzada September 9, 2019 6:42 AM
- At mid-morning London, the pound was the strongest among G10 currencies, followed by the Aussie, while the yen and US dollar found themselves near the bottom of the leader board.
- Brexit, what Brexit? Pound rallied and the FTSE 100 struggled in an otherwise risk-on day for European markets this morning. A solid UK GDP figure surprised the markets. The Brexit-hit economy unexpectedly expanded by 0.3% month-over-month in July. Manufacturing production also rose 0.3%, while construction output jumped 0.5% m/m – both higher than expected. The Index of services likewise surprised with a print of +0.2% on a 3m/3m basis versus +0.1% expected.
- China’s exports unexpectedly contracted in August, hurt by US tariffs – decreasing by 1% in dollar terms, with the nation’s sales to the US declining by 16% from a year earlier. China’s imports fell 5.6%, although this was better than a decline of 6.4% expected.
- We are expecting a quietish session from the US with no major data scheduled for release. But the calendar should get busier later in the week. The main macro event is probably going to be Mario Draghi’s last policy meeting as the ECB President. Will he go out with a bang and introduce more stimulus? In addition, we have inflation figures from the US and more economic pointers from the UK. Read our week ahead report HERE.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.