July 19, 2023

Daily Report 19/07/2023

Share this:


great british pound icon

Sterling edged higher at times during Tuesday, but was unable to sustain gains and posted net losses during the day despite net gains in UK and global equities. There was further evidence of position adjustment ahead of the UK inflation data with a paring of long positions. The UK 2-year gilt yield also declined to 4-week lows which sapped potential Sterling support. UK consumer prices increased 0.1% for June compared with expectations of 0.4% with the year-on-year inflation rate declining to 7.9% from 8.7% and below expectations of 8.2%. The core rate also retreated to 6.9% from 7.1% and below expectations of 7.1%.

Key Data 

7.00 Consumer Price Index (YoY) (Jun) Act. 7.9% Exp. 8.2% Prev. 8.7%
7.00 Core Consumer Price Index (YoY) (Jun) Act. 6.9% Exp. 7.1% Prev. 7.1%

Euro logo

In comments on Tuesday, ECB council member Knot stated that rate hikes beyond July are possible, but not certain while he added that it looks like core inflation has plateaued. The comments at and following next week’s ECB policy meeting will be a key element for the Euro outlook. German yields moved significantly lower on the day and there was a sharper retreat in Italian yields which sapped underlying Euro support.

No Key Data

dollars icon

US retail sales increased 0.2% for June, below consensus forecasts of a 0.5% increase, although the May increase was revised slightly higher to 0.5% from 0.3%. Core sales also increased 0.2% on the month after a 0.3% increase previously with the control group posting a 0.6% increase on the month after a 0.3% May increase.

No Key Data