Yesterday, the US released the Conference Board Consumer Confidence Index which showed consumer confidence increased in July, after a small decline in June, to the second highest level in 16 years. The report showed the respondents were more optimistic about the short-term outlook and were expecting business conditions to improve over the next six months. The low unemployment rate is mentioned as one of the main reasons behind the increase in confidence. The Dollar saw a gain against its counter-parties on the release of the report.
Despite the worse than expected PMI figures on Monday, Germany released the Ifo Business Climate report yesterday which showed business confidence rose in July, for the sixth month in a row to the highest level since 1991. The report showed businesses were satisfied with their current business situation, whilst their short-term business outlook also improved. The Euro saw a small boost on the back of the reading.
President Trump continues to struggle to implement his own healthcare legislation and his attempted repealing of Obamacare, this week. Recently recovered US Senator John McCain who underwent surgery for brain cancer returned to Washington yesterday to re-join his team at the senate.
Emotions are running high as Trump stated at the White House on Monday “There has been enough talk and no action. Now is the time for action”. It is believed that Trump is determined to have Obamacare repealed, once and for all.
Today is arguably the biggest day of the week, with the release of the Federal Reserve rate and the prelim GDP figure from the UK. The Fed are expected to keep rates on hold, so attention will turn to the Fed’s rhetoric. Markets will be looking for any changes to the bank’s outlook on growth, or hints about balance-sheet normalisation; all potential market movers. Meanwhile, the Prelim GDP figure from the UK is expected to show a small growth from last quarter to 0.3%.