European session review: US dollar steady ahead of GDP data

The following data was published:

(Time / country / index / period / previous value / forecast)

6:00 Germany consumer confidence index from the GfK September 10 9.9 10.2

8:00 Changing the Eurozone lending to the private sector, the y / y in July 1.8% 1.8% 1.8%

8:00 Eurozone M3 Money Supply, y / y in July 5% 4.9% 4.8%

8:30 UK GDP q / q (revised data) II quarter 0.4% 0.6% 0.6%

8:30 UK GDP y / y (revised data) II q 2% 2.2% 2.2%

The pound fell moderately against the US dollar retreated from a session high, ahead of the data on US GDP and the speech by Fed Yellen. Limited impact on the pound provided statistics on Britain’s GDP, which coincided with forecasts.Revised data published by the ONS showed that in the second quarter UK GDP grew by 0.6 percent relative to the previous three-month period and increased by 2.2 percent in annual terms. The last change was in line with the preliminary readings and forecasts. Household spending rose in the 2nd quarter by 0.9 percent compared to the first three months of 2016. In annual terms, the increase in household expenditure (+3.0 percent) was the strongest since the end of 2007. Business investment rose by 0.5 percent q/q, despite the predicted fall. This change helped offset the decline in the first three months of this year. On an annual basis, business investment fell by 0.8 per cent, which corresponds to a change in the 1st quarter.

The dollar consolidated against the euro while remaining near the opening level of the day. Consumer confidence data in Germany gave little support, while the situation on the stock markets is flat. In general, experts point out that many investors prefer not to risks, waiting for the Fed’s Yellen speech. Traders believe that the further tightening of monetary policy the Fed is unlikely against the backdrop of weak data on GDP growth and productivity. However, the positive comments from the Federal Reserve voiced in recent days have increased hopes for a rate hike.

EUR / USD: during the European session, the pair traded in a narrow range

GBP / USD: during the European session, the pair rose to $ 1.3232, but then fell back slightly

USD / JPY: during the European session, the pair consolidated in a narrow range

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