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

February 24, 2017
Oil prices slightly grew
Brent oil prices extended their recovery in the Asian session on Thursday. Buyers led the price higher and broke 56.50 dollars per barrel in the early European morning...
February 24, 2017
Dollar drifts on Fed's lack of optimism
FOMC February meeting minutes released on Wednesday failed to provide support for the bulls to manage a sustainable breakout above 101.50...
February 24, 2017
Can gold continue post Fed rally?
Gold jumped to a 3 month high today, snapping a 3-day losing streak today after traders digested yesterday’s minutes meeting from the US Federal Reserve...

FIBO Group Rating
 FXTM Rating
FXCM Rating
OctaFX Rating
FxPro Rating
NPBFX Rating

OptionTrade Rating
365BinaryOption Rating
Empire Option Rating
UKoptions Rating
Porter Finance Rating
Binary.com Rating