Market Moves: UK GDP and US Inflation in Focus

Today's market action is shaped by key economic data releases from the UK and the US. The British economy showed modest growth in the second quarter, while traders are eyeing US inflation figures for further clues on Federal Reserve policy.

What's on the calendar

The economic calendar today features significant data releases. The UK has reported its GDP figures, with the monthly GDP for June showing unexpected growth of 0.3%, surpassing the forecast of 0.0%. The preliminary GDP for the second quarter matched expectations with a 0.4% increase, although this is a slowdown from the previous quarter's 0.6% growth. Later today, the US will release its Producer Price Index (PPI) data, with the core PPI expected to rise by 0.3% and the overall PPI by 0.2%. Additionally, unemployment claims are forecasted to be slightly higher at 202,000 compared to the previous 199,000.

What's moving

The British Pound has attracted bids against the Japanese Yen following the release of the UK's GDP data, reflecting a positive market reaction to the economic growth figures. Meanwhile, the Euro remains in a range against the US Dollar after a brief spike, with traders assessing the impact of recent US inflation data. The US Dollar is trading firmly, influencing various currency pairs, including the GBP/USD, which is trading below the 1.3500 mark. In commodities, gold prices have weakened, continuing their slide below $4,400 as the US Dollar maintains its strength amid expectations of future Federal Reserve actions.

Bottom line

Today's market movements are heavily influenced by economic data releases from the UK and the US. The UK's GDP figures have provided a slight boost to the Pound, while traders await US inflation data for further direction on Federal Reserve policy.

This brief is a snapshot of public commentary at the time of writing — not financial advice.