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US president, Joe Biden, addressed the nation from the White House's Oval Office just yesterday
US president, Joe Biden, gave a rare national address from the Oval Office yesterday, framing his decision to step down as a presidential candidate to “pass the torch” to his current vice, Kamala Harris. He also said, “I revere this office, but I love my country more.”
There was little to report for the pound, euro and US dollar yesterday as economic data remained light for our key currencies.
Yesterday morning, German HCOB manufacturing PMI figures proved disappointing in July. The indices unexpectedly fell to 42.6, the lowest in three months, compared to 43.5 in June and market forecasts of 44. This suggests a worsening across the manufacturing industry, driven by falling output levels and lower new orders.
The Bank of Canada cut its key interest rate by 25 basis points to 4.5% in its July meeting, matching market expectations. The Governing Council expects CPI inflation to decrease in the second half of 2024, before steadying around 2% in 2025.
Over in the US, the sales of new single-family homes fell by 0.6% in June as high prices and mortgage rates continue to affect buyers’ affordability. This was the lowest reading in seven months and the 617,000 reading was well below forecasts of 640,000.
An acceleration of new business inflows supported US services PMIs yesterday, which rose to 56 in July, reaching the highest level in over two years. This was higher than June’s 55.3 and forecasts of 55, flash data showed.
At 9am this morning, German business climate figures are expected to increase to 89 in July from 88.6 in June.
This afternoon, the economic docket holds US durable goods orders for June and the GDP growth rate for Q2. Tomorrow, the spotlight remains on the US, with personal income and spending readings for June, along with core PCE price index figures.
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GBP: Interest rates force mortgagors into poverty
A recent study from the Institute for Fiscal Studies (IFS) found that as many as 320,000 UK adults have been forced into poverty by soaring mortgage costs after recent interest rate hikes affected their affordability. Between December 2021 and 2023, poverty rates among mortgage owners increased by 1.4 percentage points.
GBP/USD: the past year
EUR: One day till the Paris Olympics
Tomorrow, the summer games kick off in Paris. An economic study compiled by CDES predicts that the 2024 Games (Olympics and Paralympics) could deliver up to €11 bn in economic benefits. The forecast expects the organisation of the events to have the biggest economic impact.
GBP/EUR: the past year
USD: Japanese yen soars against the US dollar
Ahead of the Bank of Japan’s policy meeting next Wednesday, the Japanese yen gained over 1% against the US dollar yesterday, taking its monthly gains to 4.25% against the American currency.
USD/EUR: the past year
