Tensions between the US and North Korea are heating up as US President Donald Trump has threatened to fight North Korea with ‘fire and fury like the world has never seen.’ The threat comes as North Korea vows ‘thousands-fold’ revenge against the US, as the US voted to impose new sanctions on North Korea’s missile tests. After Trump’s announcement, North Korea released a statement stating that they are considering missile strikes on the US Pacific territory of Guam.
German exports fell in June by 2.8%, the biggest drop in almost two years according to data released from the country’s Federal Statistical Office. This provides further evidence that the increasingly strong Euro, could be hindering the Eurozone’s recovery. The Euro has continued to strengthen over the past months, depressing inflation. This could trigger a downgrade in the ECB’s inflation forecasts in September.
Today the economic docket is fairly light. China released their Inflation Figure in the early hours of the morning, slightly worse than expected at 1.4. The US will be releasing the Prelim Non-Farm Productivity and Prelim Unit Labour Costs this afternoon. This evening sees New Zealand release their Rate Decision followed by the Reserve Bank of New Zealand Press Conference.