Sterling eased from its 21-month high yesterday, as investors took profits from the the strong run. Stronger-than-expected data came out of the Eurozone. German flash inflation edged up to 1.6%, from forecast 1.4%, although still below the ECB’s target level.
It’s been a largely quiet day for economic releases, but, tomorrow, we have mortgage approvals in the UK and year on year inflation flash rate for the Eurozone.
US GDP growth slowed from previous quarters, with a 0.8% drop in annualised growth. Nonetheless, the fall was above expectations, causing the dollar to strengthen against the pound.
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Meanwhile, the Trump-Kim denuclearisation saga continues, with North Korea saying that they only requested partial sanctions relief. The US, however, still insist that a full lift of sanctions was asked for. It will be interesting to see how this plays out, and if a deal between the two nations can ever be met.