A new low
Today's news headlines:
'UK consumer confidence hits record low as household mood darkens'. Monthly research from data provider GfK has revealed the August index for overall UK Consumer Confidence has fallen to its lowest ever score of minus 44 since comparable records began in 1974. British consumers were asked about their personal financial situation, and their scores reflected the lows seen in the 2008 Global Financial Crisis and the 2012 austerity period, indicating that many more people are predicting their financial situation to worsen rather than improve over the coming year. Moreover, households are equally disheartened about the general economic prospects of the UK, with the score declining every month since December 2021. (Financial Times)
'Turkey surprises with interest rate cut as inflation soars'. Despite Turkey's eye-watering 80% inflation rate, the central bank has taken a dovish approach to economic policy and reduced interest rates by 100 basis points ahead of the general election next year, a move which has shocked markets. The central bank's highly irregular monetary policy, coupled with soaring inflation, has elicited foreign investors to move their capital out of the Turkish markets, causing the Lira to collapse by 25% this year alone. (Financial Times)
GfK's UK Consumer Confidence data led to short-term drops against the Dollar and Euro for Sterling, but the rates have since steadied overnight. Despite brief rallies yesterday, US stocks have slumped back to previous levels, and increased oil production has caused Brent oil to fall further, trading at a little over $95.
UK GfK Consumer Confidence: -44 vs -41 previously
JPY National Core CPI y/y: 2.4% vs 2.2% previously
EUR German PPI m/m: PPI: 5.3% vs 0.6 % previously
UK Retail Sales m/m: 0.3% vs -0.2% previously
CAD Retail Sales m/m: 1:30PM
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.