USD – The dollar advanced against a basket of currencies on Thursday, after data showed producer prices posted their largest annual increase in more than a decade in the 12 months through July, suggesting inflation pressures remain strong.
Action Economic summarized today’s and yesterday’s reports, stating that “today’s huge upside PPI surprise follows yesterday’s solid but moderating CPI gains, leaving a mix that will keep inflation concerns alive even as economists will continue to expect a slowing in monthly price gains into year-end.”
GBP – Sterling edged lower on Thursday as analysts expected the Bank of England to make no imminent moves in its monetary policy after official data showed Britain’s economy grew in line with expectations in the second quarter.
Equiti Capital argues that “for sterling while the economic landscape continues to provide solid support, it does suggest further topside progress will be slow, It is quite likely that the pace of growth has already peaked.”
Action Economic summarized today’s and yesterday’s reports, stating that “today’s huge upside PPI surprise follows yesterday’s solid but moderating CPI gains, leaving a mix that will keep inflation concerns alive even as economists will continue to expect a slowing in monthly price gains into year-end.”
GBP – Sterling edged lower on Thursday as analysts expected the Bank of England to make no imminent moves in its monetary policy after official data showed Britain’s economy grew in line with expectations in the second quarter.
Equiti Capital argues that “for sterling while the economic landscape continues to provide solid support, it does suggest further topside progress will be slow, It is quite likely that the pace of growth has already peaked.”