Pound Up After China News
After news that Chinese exports edged unexpectedly higher in July, the British pound was able to recover some of its recent losses. Analysts say, however, that the pound remains under heavy pressure and more erosion is expected as time ticks down toward the Brexit deadline. Today's gains are considered a temporary respite, with a reversal back to trend likely to ensue in due time. Sterling is still trading near the 2017 trough against the US Dollar.
As reported at 11:25 am (GMT) in London, the GBP/USD was trading at $1.2157, a gain of 0.1202%; the pair earlier hit a peak of $1.2183, but the low is at $1.21.39. The EUR/GBP is trading at 0.9219 Pence, down 0.0672%; the pair's trading range in this session is 0.92070 Pence at the low end and 0.92300 Pence at the high end.
Japan GDP and RBA Speech in Focus
Later in the trading day, a slew of data will be released including US labor numbers and, in Japan, preliminary GDP figures for the second quarter. Analysts are predicting that GDP will fall to 0.1% from 0.6% on a quarterly basis, while annualized figures will show a decline to 0.4% from 2.2%. Before then, though, the Reserve Bank of Australia's governor is due to speak and could provide clues as to the RBA's intent as regards monetary policy, in light of the New Zealand central bank's surprisingly aggressive rate cut.
- Currency Pairs