In the absence of significant economic data, currency markets looked to smaller indexes and older reports to direct their movement. The running theme of the US election and its associated risks meanwhile continued to colour the overriding discourse.
The pound edged around a quarter of a cent higher against the euro, putting it in touching distance of its recent highs. GBP/USD stabilised after falling in the morning session, while EUR/USD lost around 0.25% over the course of Tuesday.
It seems sterling markets are now predicting the Bank of England will cut interest rates more aggressively than expected. This is not based on new data but rather last week’s unexpected retail sales contraction, which helped to fuel hopes the Bank would react to boost growth.
Existing home sales in the US fell by 5.4% month-on-month in June. That’s the sharpest decline in two years, partly explained by the median sales price setting a new record of $426,900.
Kamala Harris has enjoyed a swift passage to presumptive Democratic nominee, but she now needs to make some big decisions. First up is selecting her running mate. Josh Shapiro, Mark Kelly and Roy Cooper — all of whom hail from key swing states — are said to be the favourites.
US Secret Service director Kimberly Cheatle resigned yesterday after the assassination attempt on Donald Trump. Her decision follows an uncomfortable appearance before lawmakers, in which she was unable to provide answers on how the shooter was allowed to get so close.
Music streaming service Spotify saw its share price surge by over 14% yesterday after it reported record quarterly profit. Paid subscribers grew 12% in the second quarter of 2024, while revenue from premium subscribers rose 21% thanks to price increases.
Spotify wasn’t the only large company reporting earnings yesterday. Tesla released their own set of figures after market close, while BT, Vodafone and Astrazenica will also join the growing pre-summer scramble.
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