The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
Domestic demand helps Germany to drive euro zone economy in the second quarter
In the second quarter sturdy household spending, soaring state expenditure as well as higher company investments managed to consolidate Germany's role as the euro zone surge engine. However, accelerating imports suggest surge came in below expectations.
Seasonally as well as calendar-adjusted GDP rallied by 0.6% on the quarter, as the Federal Statistics Office informed on Tuesday. It was modestly weaker than the consensus prediction of 0.7% in a Reuters survey.
However, the ascend rate for the first quarter was updated up to 0.7% from 0.6%, and the April-June expansion definitely marked a 12th consecutive quarter of surge.
Financial experts stress that the German economy is successfully proving its enormous power. Additionally, the ECB’s low interest rates were spurring the German economy too.
According to the Statistics Office, in the April-June period surge was mostly powered by domestic demand because households as well as state authorities enhanced their spending and companies spurred investment in equipment and buildings.
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…