GBP Awaits Second GDP Estimate

Excluding last October’s flash crash in the pound, sterling fell to its lowest levels against the euro since October 2009 after the single currency rallied on a jump in the Eurozone’s Manufacturing PMI. Sterling-euro fell below 1.0900, meeting support around 1.0825. Sterling fell below 1.2800 against the dollar, while euro-dollar regained 1.1800.

Previous Day's Market Highlights

Excluding last October’s flash crash in the pound, sterling fell to its lowest levels against the euro since October 2009 after the single currency rallied on a jump in the Eurozone’s Manufacturing PMISterling-euro fell below 1.0900, meeting support around 1.0825. Sterling fell below 1.2800 against the dollar, while euro-dollar regained 1.1800.
 
ECB President Draghi gave the opening remarks at the Lindau Meeting on Economic Sciences in Germany, defending the ECB’s QE programme.  
 
Oil prices picked up yesterday on an eighth consecutive decline in weekly US EIA Crude Oil Inventories. The gains contributed to the loonie’s advances against the pound. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.0851 1.1248 1.0827 3.74%
GBP / USD 1.2795 1.3272 1.2777 3.73%
EUR / USD 1.1791 1.1912 1.1650 2.20%
GBP/AUD 1.6256 1.6743 1.6171 3.42%
GBP / NZD 1.7778 1.7929 1.7398 2.96%
GBP / CAD 1.6058 1.6727 1.6057 4.01%

Today's Market Highlights

The second estimate of the UK’s Q2 GDP (09:30 BST) is expected to be unrevised at 0.3%. The release may have a muted impact barring any revision. Slower Business Investment may weigh.
 
In the afternoon, the US releases Existing Home Sales (15:00 BST), forecast to pick up to an annualised 5.57M (15:00 BST), which may offer the dollar some support. Weekly Initial Jobless Claims (13:30 BST) are forecast to pick up to 238K from 232K.
 
Markets are looking ahead to tomorrow’s comments from ECB President Draghi at the Jackson Hole Economic Symposium

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Second Estimate of GDP QoQ (Q2) 0.3% 0.3%
09:30 GBP Second Estimate of GDP YoY (Q2) 1.7% 1.7%
09:30 GBP Total Business Investment QoQ (Q2) 0.4% 0.6%
09:30 GBP Total Business Investment YoY (Q2) 0.5% 0.7%
13:30 USD Initial Jobless Claims (Aug 18) 238K 232K
15:00 USD Existing Home Sales MoM (Jul) 5.57M 5.52M