For the second quarter this year, US GDP received an upward revision - from 2.8% to 3% - and jobless claims came in marginally lower than expected at 231,000, resulting in USD gains over the course of the day.
EUR weakness continued as German CPI numbers came in lower than expected. As a result, GBPEUR carved out a new one-month high.
*Daily move - against G10 rates at 7:30am, 30.08.24
** Indicative rates - interbank rates at 7:30am, 30.08.24
Today's focus zeroes in on inflation metrics from both Europe and the US.
Yesterday, Spanish and German CPI numbers came in lower than anticipated and it seems that the EU headline numbers might also come in below expectations. This will likely add further pressure on the EUR, which has struggled this week.
As mentioned earlier this week, given the relative weakness of USD over the last month, demand for it has been picking up. If the core PCE number today indicates that inflation holds steady, we'd expect further gains for USD before heading into the job numbers next week.
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