Sterling Slides on Poor UK GDP, While Dollar Struggles Under Trade Uncertainty
Action Insight Daily 6-12-25 |
Sterling Slides on Poor UK GDP, While Dollar Struggles Under Trade Uncertainty |
Sterling came under renewed pressure at the start of European session, triggered by a deeper-than-expected contraction in UK GDP for April. Services sector, the economy’s dominant component, posted its first monthly decline since October. Nine out of 14 services subsectors registered falls, pointing to broad-based weakness. It's a disappointing start to Q2 and follows weaker-than-expected labor data earlier in the week. The string of soft UK economic releases is likely to reinforce BoE’s case for policy easing. Market expectations for a rate cut in August are now firming, with investors betting that the BoE will continue its gradual loosening cycle. While the central bank has maintained a cautious stance thus far, the data flow increasingly supports action sooner rather than later, especially if core inflation continues to moderate alongside cooling wages and tepid output growth.... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.1429; (P) 1.1465; (R1) 1.1524; More... EUR/USD's rise from 1.1064 resumed by breaking through 1.1494 and intraday bias is back on the upside for 1.1572 high. Strong resistance could be seen there to bring another fall, to extend the near term consolidation pattern. Firm break of 1.1404 support will turn intraday bias back to the downside for 1.1209 first. However, decisive break of 1.1572 will resume whole rise from 1.0176. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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23:01 | GBP | RICS Housing Price Balance May | -8% | -3% | -3% | 23:50 | JPY | BSI Large Manufacturing Index Q2 | -4.8 | 0.8 | -2.4 | 01:00 | AUD | Consumer Inflation Expectations Jun | 5.00% | 4.10% | 06:00 | GBP | GDP M/M Apr | -0.30% | -0.10% | 0.20% | 06:00 | GBP | Industrial Production M/M Apr | -0.60% | -0.40% | -0.70% | 06:00 | GBP | Industrial Production Y/Y Apr | -0.30% | -0.20% | -0.70% | 06:00 | GBP | Manufacturing Production M/M Apr | -0.90% | -0.80% | -0.80% | 06:00 | GBP | Manufacturing Production Y/Y Apr | 0.40% | 0.40% | -0.80% | 06:00 | GBP | Goods Trade Balance (GBP) Apr | -23.2B | -20.8B | -19.9B | 12:30 | USD | PPI M/M May | 0.20% | -0.50% | 12:30 | USD | PPI Y/Y May | 2.60% | 2.40% | 12:30 | USD | PPI Core M/M May | 0.30% | -0.40% | 12:30 | USD | PPI Core Y/Y May | 3.00% | 3.10% | 12:30 | USD | Initial Jobless Claims (Jun 6) | 251K | 247K | 14:30 | USD | Natural Gas Storage | 108B | 122B |
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