Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
Further Dollar weakness has continued to support industrial metals during the past week, particularly following the failure of the Trump administration’s healthcare reform bill on Monday night.
After a slow day yesterday with both GBPUSD and GBPEUR trading in very tight ranges, we have two events today which could provide some excitement in the markets. First up at 9:30am is UK Retail Sales.
The UK inflation figures for June surprised to the downside yesterday with June’s headline CPI inflation unexpectedly edging down to 2.6% from 2.9% in May. Market expectations had been for a steady figure of 2.9% in June (Investec 2.8%). The other measures of price inflation CPIH, RPI and PPI all edged lower too, although core output prices were a touch higher.
We arrived at our desks this morning to find the USD on the back foot again, as Republicans abandoned their efforts to repeal and replace Obamacare in one fell swoop after it became clear that the Senate version of the replacement Bill could not achieve the required votes.
It looked like last week was going to follow the typical pattern of a sell-off after the weekly US inventory numbers, even though they were very strong: 7.5m barrel fall in crude inventory and 1.6m barrel fall in gasoline.