German economy on brink of recession

As German GDP contracted by 0.1% (QoQ), Sterling has stayed near 32 month lows despite positive wage data.

Previous Day's Market Highlights

  • The Pound was unable to shake any of the losses caused by a no deal Brexit despite wage growth rising to a 11-year high.
  • Markets now predicting a 68% chance of a 0.25% rate cut by the bank of England by the end of December.
  • US headline and core inflation both increase by 0.3% for the month of July. This is the second month in a row of an increase of 0.3%, which hasn’t occurred since 2001.
  • US equity markets jump after the USTR announces delay to additional tariffs on China.
Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.0790 1.1246 1.0736 4.53%
GBP/USD 1.2058 1.2578 1.2015 4.48%
EUR/USD 1.1175 1.1285 1.0736 1.91%
GBP/AUD 1.7768 1.8041 1.7560 2.67%
GBP/NZD 1.8676 1.8960 1.8278 3.60%
GBP/CAD 1.5951 1.6438 1.5872 3.44%

Today's Market Highlights

  • German GDP contracted by 0.1% (QoQ). Europe’s biggest economy contracting could be a worrying sign for things to come in the Eurozone. Though GDP across the Eurozone is expected to remain at 1.1%.
  • UK Consumer price index is expected to fall by 0.1% to 1.9% (YoY).

Today's Economic Calendar

Time Currency Release Consensus Previous
1:30am AUD Westpac Consumer Sentiment (Aug) -4.1%
2:30am AUD Wage Price Index (QoQ) (Q2) 0.5% 0.5%
3:00am CNY Retail Sales (YoY) (Jul) 8.6% 9.8%
3:00am CNY Industrial Production (YoY) (Jul) 5.8% 6.3%
3:00am CNY NBS Press Conference
7:00am EUR German Prelim GDP (QoQ) -0.1% 0.4%
8:30am AUD RBA Assist Gov Debelle Speaks
9:30am GBP Consumer Price Index (YoY) (Jul) 1.9% 2.0%
9:30am GBP Core Consumer Price Index (YoY) (Jul) 1.8% 1.8%
9:30am GBP Consumer Price Index (MoM) (Jul) 0.1% 0.0%
10:00am EUR Gross Domestic Product s.a. (YoY) (Q2) 1.1% 1.1%
10:00am EUR Gross Domestic Product s.a. (QoQ) 0.2% 0.2%
10:00am EUR German 10-y Bond Auction -0.41%