The Greenback remained buoyant yesterday, despite the markets lowering expectations for a Fed rate hike and the profit-taking seen after last week’s bullish Non-Farm payrolls. The systematic flow is still relatively mooted, however, yesterday we saw some Sterling selling against the Euro and Dollar, with GBP/USD testing the post-Brexit low once again. Overall, it was a quiet day for the G10 currencies as little data was published.
Early this morning, the world’s second largest economy posted their Industrial Production figures. Industrial production posted a worse than expected 6%. With the slowdown already seen in China, this figure adds further evidence that the World’s Manufacturing powerhouse continues to struggle.
Firstly, on today’s economic calendar there will be the release of Germany’s Q2 GDP report, where growth is due to drop to 0.3% from 0.7%. This will be followed by the main Eurozone Q2 GDP second reading, which is forecast to remain at 0.3%. From the US, the Retail Sales monthly figure is published and expected to fall to 0.34% from the previous 0.6%.