It was a mixed bag of Chinese data earlier this morning. Quarter on quarter GDP numbers showed a contraction of 2.6%. Analysts were predicting a 1.5% contraction. However retail sales came in with a 3.1% growth when analysts were predicting zero growth. On the back of this the Chinese Yuan rate has barely moved.
Business headlines have returned to a more gloomy outlook with predictions of more industrial action being taken by unions over pay. Underlying high inflation means that real time wages are falling behind the cost of living. Talk is that profitable companies should be returning some of that net profit to their employees whilst businesses are citing rising costs will impact those profits in the coming months.
GBP/EUR remains in a sideways pattern which it's been locked in through the week. With no real UK or Euro centric news scheduled this may not change much today. GBP/USD looks to have temporarily bottomed out but the rate is a far cry from the recent highs and looks in poor shape. With only US based data out today this is the rate that is likely to be most affected through the course of the day.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
US: 13:30 Retail Sales
US: 15:00 Michigan Consumer Sentiment Index