So overnight we have the UK preliminary GDP came in as expected 0.6 percent. The UK economy grew in the second quarter of the year, as the first estimate post Brexit.
So it is showing that the economy has grown since the Brexit. The market rally that did not come about straight after the Brexit drop really just show that maybe it discounted the referendum, which does make a bit of sense with how aggressive the buying was post Brexit.
The US quarter number has come in worse than expected at -0.5 as expected 0.3 percent. The FOMC met last night, and as expected they held rates. The labor market has strength in growth seen in other areas but inflation is a bit of an issue as it remains under the target.
So we now have forecasted a drop in forecast from 4 to 2 potential hikes this year from the Fed. Oil inventories came out plus 1671K. It was expected at negative 2000 and this added to concern supplies in oil and we saw oil drop overnight to new low. They drop into the US$41 area and settled at $42.09.
It is sitting on previous highs but not too much fundamentally to support a turnaround at this point. But I’m keeping an eye on it as it is a couple points away from an interesting level right now.
And gold found some buyers overnight of the back of some releases coming out. It has increased $20 to $1338. A short term trend has now been broken and I’m looking for continued high price as well as support on this level.
The Euro and Pound had good nights overnight compared to the USD. The EUR/USD increase 73 pips and it is quite a strong move to see on the Euro for a bit of a change.
The US dollar was pretty mixed and had a bit an average night. It rallied yesterday and came up quite strongly after the CPI, and have basically finished where it started.
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