Market Report : 16.08.2024

Published: 16/08/2024 By ECAP

The UK economy was boosted in July, meeting estimates of retail sales growth. This shows a significant bounce back from June’s figures and provides further evidence of improving economic sentiment along with yesterday’s positive GDP data. Thursday next week will provide additional data for the market to digest including manufacturing and services PMI.

Nothing notable out of the Eurozone following the public holiday as the Euro continues to move off the back of its peers. The Euro struggled to hold onto gains made earlier in the week amid positive UK and US data. Without any data to digest, markets turn to risk sentiment.

The Dollar has been under downward pressure in recent weeks influenced by economic slowdown and expectations of the FED cutting rates in September. Weak labour market data and political uncertainties contribute to a weaker outlook however we have seen some resilience from positive retail sales and a pullback from recession fears. There are two releases today for the US, US Housing Starts and Building Permits, but we shouldn’t see significant moves in the market unless the results are far from expectations.

Data supplied by GC Partners