EU and UK car sales in 6th gear
Car sales across Europe drove higher in June. UK sales were up 18.8% on the month, German sales rose a similar 18.9% and the French number was a whopping 41.5% but that still meant French new car registrations were down 14.7% on the year. On their own, these numbers aren’t market moving but they do add to the overall feeling of recovery.
Sterling slips as Lords question BOE policy
Overall, Sterling hasn’t started the day well and there is little to support it as the UK diary lacks tier-one data. GBPUSD is down to $1.38 and GBPEUR is hanging on to €1.17 by its fingernails. This is all within recent ranges and there is nothing specific pushing the Pound down but profit taking by traders and investors can have an impact. However, a report from the house of Lords has accused the Bank of England of being addicted to creating money. Peers are asking how the BOE plans to unwind its £895 billion bond-buying program. I think we’ll all like to know that.
EU inflation data this morning
The Euro faces consumer inflation data today. That is unlikely to be far from the 1% core inflation level we saw last month, so perhaps won’t shunt the euro around too much. The GBPUSD rate is at $1.18, the lower end of its recent ranges. This week has seen this pair hit levels not witnessed since April.
The US side of that exchange rate will be driven by consumer sentiment and business inventories data today. The USD has gained more buyers of late as US data has improved somewhat and the Federal Reserve seems to be edging towards tighter monetary policy.
And then it is the weekend. Monday brings changes in the UK which removes the compulsion to wear a mask and allow meeting in larger groups again. Mind you, anyone who saw the TV coverage of the football will know, those laws have been ignored by huge numbers of people for a while now. Another surge in coronavirus amongst football fans should come as no surprise when it happens. And yet, anecdotally, I know a lot of people who will continue to wear masks after Monday. I wonder when this will end.
Have a great weekend everyone.