Dear Reader,

Today's overview of economic news and market action

• There was a somewhat more positive tone to investor sentiment yesterday …
• Data-wise, the flash readings of both Spanish and German HICP inflation printed below the consensus …
• In the US, Q2 GDP growth was revised higher, and core-PCE slightly lower …
• On the currency front, the dollar was in the ascendancy, while the euro was softer …
• Evidenced by EUR/USD opening today back below $1.11 …
• GBP/USD is down in the $1.31-1.32 corridor …
• EUR/GBP is operating closer to the 84p handle …
• Today, flash Eurozone HICP (Aug) and US core-PCE (Jul) will be in focus …

All rates quoted are indicative market rates.

House prices continue to trend sharply higher. They were up 8.6% YoY in June. Consumer prices rose by 0.2% in July, amid further increases in transport and hospitality costs. Revisions to the data show the unemployment rate averaged 4.4% in Q2’24 up from 4.3% in Q1’24. The preliminary reading indicates GDP expanded by 1.2% in Q2’24, but it remained 1.4% lower in YoY terms.