UK consumer optimism is on the rise

September 1, 2016

The UK Consumer Confidence report released by the Research Company GfK shows political and economic views of the UK citizens have picked up in August after a surge of pessimism in July in response to Brexit. MoM change in respective index averaged +5 points to -7 points. In annual terms, the headline reading dropped 14 points from 7 points in the same period of last year.

GfK official Joe Staton explained the upbeat change with UK consumers accommodating to a new reality outside of EU, although seeing no adverse changes after Brexit as official withdrawal process has not yet commenced.

All five consumer gauges have improved in August comparing to the previous month. Economic assessment index was recovered by 11 to -22 points. In August 2015 the gauge printed at 3 points. Economic evaluation for 12 months rose by 2 points to -23 points.

Nationwide House Prices rose 5.6% beating estimate at 4.8%, improved outlook for UK housing market. The Pound extended rally despite a strengthening US Dollar.

The European currency continues to unwind gains against greenback despite a positive unemployment rate change in Germany matching forecasts. The data showed unemployment fell by 7K in August while the Unemployment rate in July remained unchanged at 6.1%. Potential support for the currency was cancelled out by lacklustre EU CPI printing 0.2% year-to-year change, 0.1% lower than expected. Core CPI, which excludes some volatile goods (energy and food), rose 0.8%, 0.1% lower than anticipated.

Safe haven assets retreated with USD/JPY rising 0.28% to 103.28, XAU/USD consolidating near monthly support at $1,316 and USD/CHF rising 0.1% to 0.9845.

Low-yield government securities continue to lose in yields reflecting increased expectations of the rate hike in the coming months; US 10YR yield rose 0.85% to 1,585 while surging to 1,633 on Yellen address in Jackson Hole.

Crude prices decline on high Dollar, WTI -0.88%, Brent -1.07%

Publication source
Tickmill information  Tickmill reviews

October 26, 2016
Greenback is powered by Fed rate expectations
On Wednesday, the US dollar was backed by hopes that American interest rates will edge up by the year-end. It stood flat during Asia trade, just below a nine-month high reached overnight, while the Australian dollar earned as inflation data doused the probability of a rate drop there...
October 26, 2016
Rising rate hike odds push Dollar
The Greenback extended its rally to a nine-month high against other major peers against the rising bets of a FED tightening in December. As rumors are circling the next US leader saying that they will shift the stimulus burden from FED via changes in the fiscal policy...
October 26, 2016
Gold futures edged higher on Tuesday
The XAU/USD pair traded flat on Tuesday. The price remained between 1270 and 1260 dollars per ounce during the day. Gold prices struggled to find support around 1260. Sellers failed to break the level and the yellow metal bounced upwards and recovered to the upper boundary of the range...

FXTM Rating
FxPro Rating
Vantage FX Rating
FXCM Rating
HotForex Rating
Larson&Holz IT Ltd Rating

OptionBit Rating
OptionRally Rating
OptionFair Rating
Grand Option Rating
Porter Finance Rating
24option Rating