Dollar data continues to impress

29 August, 2014

Rob Bastin

In a quiet week of data for the pound, any releases of note have been for the Euro-zone and the USA as we come to the end of the month. Yesterday’s trading saw more stability for the pound with an absence of supporting data, whilst the Euro and Dollar are enjoying contrasting weeks. The Euro has been sold off all week and the latest figures did little to change this trend. German unemployment rate hit the expected 6.7% but the change from last month actually saw an increase rather the predicted drop. Confidence in the Euro-zone is also suffering at the moment with official confidence figures for services, industrial, business and consumer all falling short of analysts’ expectations, encouraging further selling of the Euro.

In the afternoon US data took centre stage with the latest GDP revisions and Pending Home Sales figures. GDP in the USA has improved vastly in the last quarter and latest figure were revised to show further annual growth of 4.2%. Meanwhile Pending Home Sales posted a result of 3.3%, up significantly from -1.3% last month. The Dollar pushed on further against the Euro and British Pound but may well me reaching the limits of its recent strong rally.

To end the month we have a small UK announcement at 9:30am with Total Business Investment however this is unlikely to be a big market mover. Euro inflation data along with unemployment rate will be announced at 10:00am and this could be key for GBP/EUR rates today. US Core Personal Consumption figures are to be announced at the usual 1:30pm.