UK economy grew in August - EBC Daily Snapshot
2023-10-12
Summary:
On Thursday, the US dollar flirts with a 2-week low before key inflation data, primarily due to falling Treasury yields.
EBC Forex Snapshot
12 Oct 2023
The US dollar hovers near a two-week low on Thursday ahead of important inflation data. The recent weakness has been largely driven by declining Treasury yields.
The UK economy returned to growth in August, as activity picked up but July’s GDP report has been revised down to show a fall of 0.6% from 0.5%. The pound barely reacted to the report.
Sterling was the best performing G10 currency in the first half of this year before losing fizz due to softening inflation and weakening growth. Investors are putting a chance of less than 25% on the BoE resuming its rate hikes in November.
| Citi (as of 3 Oct) | HSBC (as of 12 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0477 | 1.0834 | 1.0491 | 1.0699 |
| GBP/USD | 1.2011 | 1.2308 | 1.2118 | 1.2420 |
| USD/CHF | 0.8745 | 0.9338 | 0.8931 | 0.9175 |
| AUD/USD | 0.6300 | 0.6522 | 0.6297 | 0.6515 |
| USD/CAD | 1.3302 | 1.3695 | 1.3410 | 1.3780 |
| USD/JPY | 144.54 | 150.15 | 147.63 | 150.42 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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