Daily Market Report 08/09/15

EUR
The only piece of note concerning the EUR yesterday was the industrial figures from Germany. Industrial production increased by 0.7% MoM in July. The June figures however were revised upwards to a decrease of 0.9% MoM. On the year, production is up by 0.5%, showing that the German industry remains solid but is still struggling to gain momentum. 

The mood in the German economy is good, but the hard data is still mixed. Confidence indicators like the IFO and the PMI have remained strong, despite the Greek crisis and latest Chinese woes.

Looking ahead there is hope that the German industry could shift up one gear, benefiting from the well-known tailwinds. Low energy prices, low interest rates, a weak euro and strong domestic demand should support industrial production in the near term.

GBP
Prime Minister David Cameron suffered an embarrassing defeat in parliament on Monday over how the referendum regarding leaving the European Union will be conducted. In Monday's vote euro-skeptics teamed up with MPs from the main opposition Labour party and the Scottish National Party to vote down the move, which they saw as a key test of the government's willingness to address their concerns.

It also emerged during the debate that ministers will now have to give four months' notice of the date of the referendum, giving both sides time to campaign, rather than calling a snap vote. The bill now goes to the House of Lords, the upper legislative chamber of parliament, for further debate before it can become law.

 

Key Announcements
10:00 - EUR:  Eurozone GDP – expected to remain unchanged at  1.2% YoY.