Dollar under pressure

The dollar remains under pressure, weakening further against the euro and sterling to $1.19 and $1.31 respectively, which leaves the euro-pound rate still trading just below the 91p level. European equity markets lost ground yesterday, with US indices closing marginally lower on the day, while core bond yields edged down again

The US economy contracted sharply in the second quarter of the year. GDP fell by 9.5% from Q1 (it was also down 9.5% from the corresponding quarter in 2019), with consumer spending and business investment posting large declines

The German economy contracted by just over 10% in Q2, after contracting by 2% in the first quarter, while the annual rate of CPI inflation slowed to 0.0% in July from 0.8% in June

Economic sentiment in the Euro area rose for a third consecutive month in July, though it remains well below its pre-COVID level, according to the European Commission’s measure, while the unemployment rate rose to 7.8% in June (up from a pre-crisis low of 7.1% in February

Data due today includes second quarter GDP and July CPI inflation in the Euro area as well as consumer spending and PCE inflation in the US