Yesterday’s Market Movers
- In the UK yesterday we had the Retail Sales YoY and MoM figures, which both came out worse than expected, this has again fuelled further speculation that the UK will not be raising interest rates in the near future. Sterling lost 50 points against the US Dollar and lost some ground against a weaker Euro. The retail sales may have been a big drop following on from last month’s surge due the the Royal Wedding figures which were a lot better. This shows that the economy needs to take a downturn before it improves again within the next few months.
- In Europe yesterday we had the CPI (MoM) and (YoY) the figures came in-line with expectation but was ignored by the markets as there is more growing concerns surrounding the Greece bailout information as a solution still has not been resolved, this had left the Euro trading weaker against the US Dollar trading as low as 1.4072 on the day and against all other trading counter parts. Comments have been made this morning that the EU/IMF is to release a key loan to keep Greece afloat but there is still uncertainty over a second aid package which is keeping the markets on edge as nothing has been resolved.
- US Philly Fed survey dropped to -7.7 in June, much worse than expectation of 7. Though jobless claims improved slightly to 414k. Housing starts and building permits were also above expectations in May. These figures has no real effect as there has been a lot of speculation surrounding Europe’s debt problems which has helped the Dollar trade strong against the Euro in recent days. The US Dollar traded high against the pound to 1.6076, this is the lowest it has been for two months.
Today's Market Movers
- There is no data for the UK or US today.
- The only piece of data out in the Euro zone is the Trade Balance Figure which is expected to come in worse. We could see slight Euro weakness as this may contribute to the ongoing problems with Greece in the EU.