U.S. Review
Data Details Show Economy Continues to Firm
- Second quarter GDP was revised higher to a 4.2 percent annualized rate, with the details painting a brighter picture of the economy. Compared to the first release, trade was less of a drag, nonresidential fixed investment was stronger and inventories provided a smaller—although still sizeable—boost.
- Headlines for housing data were mixed this week, but reports generally suggest the sector continues to gradually improve as home prices are increasing at more reasonable rates, supply is coming back and future recorded sales look to improve.
- Consumers' willingness to spend remains somewhat questionable, with personal spending slipping 0.1 percent.
Global Review
Canada Firming as Europe Struggles and Japan Falters
- Real GDP in Canada grew at a 3.1 percent annualized rate in the second quarter as a 3.0 percent increase in final domestic demand and a boost from trade offset a 1.9 percent drag from slower inventory investment. See our website for complete write-up on this week’s Canadian GDP report.
- In the International Review on page 4, we look at what the latest signal of slow growth in Europe means for ECB policy as well as how the Japanese economy is faring in the wake of the deleterious effects of the April consumption tax hike.
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GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
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Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
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Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
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