Another day, another sell-off for the pound. The beleaguered currency just can’t catch a break with Brexit uncertainty continuing to overshadow any positive news, for example, this morning’s stronger wages data. The dollar rose ahead of US retail sales, industrial production and speeches from a couple of Fed officials including Chair Jay Powell.
Stocks remain supported – for now – as earnings come in thick and fast. Yesterday Citigroup kicked off bank earnings, reporting a mixed set of results. Today saw JPMorgan beat on both fronts with an EPS of $2.82 vs. $2.50 expected on revenue of $29.57 billion vs. $28.64bn expected. Goldman Sachs’ EPS of $5.81 easily beat $4.89 expected but revenues beat at $9.46 billion vs. 8.8 billion expected. Crude oil was probing resistance ahead of inventories data later
On the data front, it has been a mixed day so far. New Zealand CPI met expectations with a quartet +0.6% print. German ZEW missed at -24.5 when -22.1 was expected. In the UK wages beat but jobless claims missed: Average Weekly Earnings +3.4% in the three months to May vs. 3.1% expected and 3.2% last (revised); Earnings excluding bonuses +3.6% vs. 3.5% expected and 3.4% last, and Claimant Count Change came in at +38K vs. +19K eyed. Here is what is coming up next:
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