Markets Await US Jobs Data
The British pound fell sharply against the euro yesterday after a statement by the Bank of England on the interest rate and inflation report. The Bank of England left the interest rate unchanged at 0.25%. Politicians also lowered the forecast for GDP growth to 1.7% for 2017 and 1.6% for 2018. The outlook for inflation was slightly revised to 2.7% (previously 2.6%) for 2017 and remained unchanged for 2018 (2.6%).
Markets are focused on the economic performance of the United States. Analysts expect that the unemployment rate will drop to 4.3%, and the growth rate of the average hourly salary slowed from 2.5% to 2.4% year-on-year. It is also expected, that the US economy created 180 thousand new jobs in July, compared to the figure of 222 thousand in June.
Japan labor cash earnings fell by 0.4% yoy in June. Australian retail sales rose by 0.3% mom in June. German factory orders increased by 1.0% mom in June.