Sterling was unable to sustain a recovery against the dollar on Thursday with no move to challenge the a key level against the dollar. There was, however, a stabilisation of UK yields during the day with markets still reluctant to back away from calls of a very aggressive Bank of England stance to raise interest rates further. The UK GfK consumer confidence index dipped sharply to –30 for July from –24 previously and below expectations of –26.
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The Euro was held in tight ranges ahead of Thursday’s New York, but was unable to make any significant headway. The US Philadelphia Fed manufacturing survey remained in contraction territory for July with a marginal improvement to –13.5 from –13.7 the previous month and compared with expectations of –10.0. There was a further decline in new and unfilled orders for the month with shipments also sliding into contraction territory for the month. Employment also declined slightly on the month.
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The US Dollar (USD) enjoyed an uptick on Thursday following an extended downturn against the Pound amid bearish expectations for the Federal Reserve. Buoying the currency subsequently was a risk-off mood, as geopolitical tensions flared between China and the USA. The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year.
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