- American Inflation Figures Due Out Later Today
- UK GDP Numbers Hurt Pound
- US Markets Boosted by JPMorgan Earnings
The EUR/USD has recovered slightly on Monday passing through the key 1.13 mark again as the forex market awaits data from US CPI numbers as European industrial production figures came in strong. This was not matched in the UK where a GDP slip was matched by weak trading of Sterling. Futures markets in the US meanwhile have been boosted by much better than expected earnings report from JPMorgan Chase even though coronavirus case numbers continue to soar.
Euro Boosted by Positive Data as CPI Figures Awaited
The EUR/USD major market has struggled in trading in the last week. The Euro steadily lost any ground it had gained during the perceived coronavirus recovery and reopening as case numbers continued to bounce back strongly amid fears of a second wave of infections across the US.
This drove many in forex trading, back to the relative security of the US Dollar and as its status as a safe haven currency lived up to the name. Today though, a slight correction has occurred, with the Euro once again positively crossing over the 1.13 trading mark. With only American CPI data due later today, this movement appears to be more in response to positive data coming from the EU with German economic sentiment coming in close to the estimate at 59.3, and industrial production showing strong growth of 12.4% for May.
GBP Trading Slips on Poor GDP
The Pound has been continuing to show weakness against the US Dollar over the same recent period as the Euro, and for many of the same reasons. The UK unfortunately has a couple of additional headaches to add to the mix which have contributed to a more difficult recovery for the currency than their European counterparts. The broadest of these are the Brexit negotiations which continue to drag on, but the one which has cause the latest slip are GDP figures released today.
These numbers came in disappointingly low and well below what had been estimated. The British economy registered a growth of 1.8% in May. This is compared with a projection of more than 5% that had been expected by analysts. Forex brokers noted this poor result as being the likely driver of the GBP/USD further downward where it remains under pressure close to $1.25.
American Markets Set to Open Higher on JPMorgan Boost
The Dow Jones, which gave away gains of more than 500 points to finish yesterday’s trading session just about where it had started, is looking to get back on track today. The index is pointing toward opening gains of more than 150 points despite the fact that COVID19 cases continue to rise in record numbers.
This positivity has largely been garnered by stronger than expected revenue numbers for JPMorgan in Q2. The bank reported revenues of $33 billion, exceeding the $30.3 billion estimate, given the markets, and the banks share price a pre-market lift.