GBP/USD: UK Manufacturing Production m/m
Positive Britain's economic reports for June resulted in a solid jump in the GBP/USD exchange rate right after the data came in. Following the release, the Sterling rose versus the US Dollar by 16 base points to touch the 1.2981 level. The Office for National Statistics reported that the country's manufacturing output grew at the same pace as previously, while industrial production advanced unexpectedly over the month of June. The survey's results suggested that the manufacturing growth is likely to gain momentum in the third quarter, while exports would grow at a faster-than-estimated pace. Moreover, experts revealed that the economic expansion is likely to hold up sufficient growth pace in the second half of 2017 rather than decelerate.
EUR/USD: US PPI m/m
As the US producer prices growth missed forecasts for July, the EUR/USD currency pair extended gains during Thursday's session. The Euro appreciated against the US Dollar by 0.06% to 1.2981 to begin a dynamically strong ascending trend. The Labour Department revealed that the US Producer Prices Index dropped 0.1%, compared with a 0.1% increase in June. The PPI marked the strongest fall since August 2016, affected by diminished services costs. Despite the weaker correlation between producer prices and consumer prices, the reported drop could raise concerns over the further deceleration in the inflation growth, which would delay the next interest rate hike. In this regard, the Federal Reserve is more likely to raise rates no sooner than in December.
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