Daily Market Report - 11/08/2014

GBP
The Pound struggled during Fridays session on news UK exports dropped in June,
ending a quarter that saw the trade deficit widen to the most in almost a year.
Overseas sales (exports) fell 1.6 percent from May and imports also declined as
the UK’s trade gap widened to 9.4 billion pounds.

The figures underscore U.K. companies’ challenge to revive exports against the
challenges of weak growth in the euro area and a stronger pound.

EUR
The Euro significantly strengthened throughout Friday after German exports and
imports rebounded in June, suggesting the West’s standoff with Russia over
Ukraine is not seriously hurting Europe’s largest economy. Despite the boost
from trade, some economists see a chance of a contraction in gross domestic
product (GDP) when data for the second quarter is released next Thursday.

Trade groups are also warning of further trouble from the escalating showdown
with Russia, however despite this speculation the Euro went from strength to
strength.

USD
The Dollar made ground against the Pound after data revealed productivity of
U.S. workers rose more than projected in the second quarter, rebounding from
the biggest drop in more than three decades and helping to restrain labour
costs.

The measure of employee output per hour increased at a 2.5 percent annualized
rate, meaning companies that have been relying on wringing efficiency gains
from existing staff may take on more employees and increase investment as
demand grows.

Key Announcements:
There are no major announcements today.

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Daily Market Report – 11/08/2014