Risk sentiment eases overnight as the Turkish lira stabilizes from plummeting to an all-time low on Monday, helped by Turkey’s central bank taking steps to ease pressure on the currency. Tensions, however, remain heightened as the Turkish President Erdogan said he will boycott US electronic products from the US, whilst the White House has said Turkey can expect more economic pressure if it does not release jailed American Pastor Andrew Brunson.
UK’s unemployment rate falls to a level not seen in more than 40 years.
The rate of unemployment in the UK fell unexpectedly to 4% between April and June this year vs expectations of 4.2%, the lowest level since the 1970s. Markets, however, chose to focus on the lack of wage growth which slowed to a 9-month low of 2.4% over the same period and saw the pound slip lower.
Eurozone Q2 GDP Growth Exceeds Initial Forecasts
The Euro-zone economy expanded more than initially estimated in the second quarter, on a yearly basis at 2.2% beating expectations of 2.1%. This was widely due to Germany’s GDP for the second quarter exceeding forecasts by 0.5% vs forecasts of 0.4% expected. The upward revision to GDP growth will support policymakers at the European Central Bank that they are right to be winding down their asset purchases.
Australian Q2 Wage data
US Retail Sales and Industrial Production
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