• RICS housing data down from prior
  • French industrial output down over half a percent more than expected
  • Tension with North Korea continues to weigh on dollar 

Sterling regains ground following positive industrial and manufacturing numbers

The pound regained some lost ground yesterday, ending the trading day up an average of 0.15% against the dollar and euro after uncertainty in wider markets allowed it some breathing room against its counterparts. Despite this change in sterling sentiment, the recent disappointment from the Bank of England meeting likely capped any upside.

This morning we have had the release of RICS housing data, as well as industrial and manufacturing output. While the RICS housing data disappointed and fell six points, both industrial and manufacturing output rose more than expected and returned to positive figures, which has slowed the currency’s retracement seen during the early hours of this morning’s trading session.

Euro struggles on disappointing French industrial output number

The single currency posted a mixed performance yesterday, gaining marginally against the dollar but losing ground to the pound. A positive Italian industrial output number had limited impact on the currency. However, uncertainty in the US regarding tensions with North Korea allowed the single currency some room to breathe against the dollar.

This morning we have had the release of French industrial output, which fell further than expected. With a prior figure of 1.9%, markets were expecting a fall to -0.5% but were disappointed when the index fell a further 0.6% to -1.1% for the month of June. Following this disappointing result the currency has lost some ground against the pound but has continued to pressure the dollar.

With data from the Eurozone consistently posting mixed results, some investors are beginning to question the growing belief that the European Central Bank will begin to taper its monetary easing policy.

Dollar struggles as North Korea tension persists

Uncertainty due to rising tension between the US and North Korea weighed on the greenback yesterday, which ended the day down an average of 0.15% against the euro and sterling. While the tension with North Korea has applied pressure on the currency, positive productivity and wholesale inventory numbers likely capped any downside pressure on the greenback.

Today we have the release of initial jobless claims, which are expected to remain flat at 240,000. This steady number would provide yet more support for the recent boost in sentiment towards the US labour market and may see the greenback regain some of the lost ground from yesterday.

Comments are closed.

For all media and public relations enquiries, please contact:

Thank you

Thank you for signing up to receive EarthportFX news. You'll receive an email shortly to verify your email address and please follow the details within this.

Continue

Thank you

Thank you for verifying your email address. Your details have been added to our newsletter subscriber list!

Continue
BaydonHill is now EarthportFX

Baydonhill is now EarthportFX

More than just a new name, EarthportFX is now powered by the Earthport payment network.

Used by leading banks and ecommerce businesses; Earthport’s global network offers direct local payment capability in over 60 countries and access to the latest global payments technology.

Still with the same expert service and extensive currency capabilities, see how we go beyond FX.