As a fresh week begins following last Friday’s strong US employment report, focus will move across to the US inflation outlook. 943,000 jobs were added to the US economy in July, the highest amount in almost 1 year. This will go a long way in pleasing the Fed and helping them towards their ‘substantial progress’ objective needed for them to commence tapering asset purchases.
The highlight this week will once again shift over to the US consumer price index report. Prices have been surging this year but the Fed has been insistent on this only being a temporary move. This week’s data is set to cool off from last month’s 5.4% reading but nevertheless still be well above the Fed’s 2% target.
Elsewhere, this week sees the UK’s Q2 GDP print which is expected to come in around the 4.8% level. Also on tap from the UK will be manufacturing and industrial production prints. This is all happening while the UK economy continues with its full reopening despite elevated levels of infection.
Have a good week.
Written by Viv Savani. 6:51am, August 9th 2021
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.