Yesterday morning German business sentiment unexpectedly declined the most in more than four years in August in a sign that companies are waking up to the consequences of Britain’s decision to quit the European Union.
The drop in the key IFO business climate index revealed Political uncertainty related to Brexit and a range of other crises in the region threaten to damp so-far solid growth in Europe’s largest economy.
The Dollar strengthened after orders for business equipment climbed in July for a second month, advancing the most since January which indicates companies are becoming less reluctant to invest.
The US also had another strong jobs figure with unemployment benefits unexpectedly falling last week, suggesting the labour market was continuing to gain momentum. Claims have now been below 300,000, a threshold associated with a strong labour market, for 77 straight weeks. That is the longest such stretch since 1973.
09:30 – GBP – Second estimate GDP is expected to remain at 0.6%
13:30 – USD – Preliminary GDP is expected to fall to 1.1%
15:00 – USD – Fed Chair Yellen Speaks