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August 2016

Sterling holds ground against Euro

Published: Tuesday 30 August 2016

Contrary to June’s positive reading for Net Lending to Individuals, this month’s figures came out worse than expected at 3.8 billion from the forecast 4.9 billion. This indicator is closely watched as increased borrowing often leads to greater levels of spending.  UK mortgage approvals also dropped to an 18 month low in July.  Consumer credit meanwhile increased by 1.2billion or 0.6% month on month.  Overnight from UK we have GFK Consumer Spending which has looked particularly weak in the last two readings.  Another poor reading is expected in August of -8 points.
In the afternoon we have US Consumer Confidence, a possible indicator of future spending.  As mentioned this morning, uncertainty over the US presidential election and weak economic growth in recent quarters could weigh down on these figures out later today.
We have a busy week ahead.  Tomorrow, US ADP non-farm employment change, followed by crude oil levels, manufacturing figures from UK and USA tomorrow and finally Friday we have UK construction and US Non-farms.

Latest FX news by Joe De Berniere