Trade and Production Figures to Define the Pound

Daily Update - 10th August 2017

Yesterday’s Focus

• US Unit Labor Costs, Nonfarm Productivity
• NZD Interest Rate Decision, Monetary Policy Statement & Press Conference

Yesterday’s Explained

It was a light news day in the US economic data did little to distract from the tensions with North Korea, as US labor productivity increased by slightly more than expected in the second quarter, which was disappointing. The report measures production efficiency and a higher number is not good for the dollar.

On the other side, RBNZ leaves rates unchanged at 1.75%. Overall, the Reserve Bank of New Zealand was less dovish than expected, providing some support to the NZD.

Today’s Market

• AUD Consumer Inflation, RBA’s Governor Speech
• GBP Manufacturing Production & Industrial Production
• US Jobless Claims, Fed’s William Dudley Speech & Monthly Budget Statement

Today’s Focus

Traders seemed to be waiting for a busy UK economic calendar, with spotlight on manufacturing/industrial production data. This followed by UK trade balance and construction output data would drive the pair during European trading session. From the US, the release of PPI and weekly unemployment claims are unlikely to big major market-movers as the key focus remains on Friday's consumer inflation figures, which might influence Fed rate hike expectations and help determine the next leg of directional move for the major.