Yesterday’s UK data was encouraging. June GDP data surpassed expectations with the services sector driving growth and helping to achieve the 1% expansion. This uplift coincides with the easing of restrictions and should provide sterling bulls with a modicum of confidence for the remainder of the year. There was good news on the trade front too with the exports of goods to the EU recorded above pre-Brexit levels for the 2nd month in a row.
The good news did not filter into the sterling market with the pound having a soft day. GBPUSD fell to the low $1.38s and the GBPEUR pair plunged back into the €1.17s.
Today’s calendar is exceptionally light. No tier 1 data is expected and, with many participants away from the desk, it should be a very quiet day across financial markets.
Have a great weekend.
Written by Viv Savani. 8:14am, August 13th 2021
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