The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Great Britain enjoys the fastest surge for a year
For the three months to July, the United Kingdom has faced its fastest economic surge for almost a year due to firm consumer spending provoked by the World Cup as well as unusually warm weather. That’s what official figures revealed on Monday.
For the three months to July, GDP rallied by up to 0.6% compared to the previous three-month period, as the Office for National Statistics uncovered, picking up pace from 0.4% surge for the three months to June - and also at the top end of estimates in a Reuters survey.
It has turned out to be the fastest surge since August last year, and it should reassure Britain’s key financial institution that had interest rates lifted the previous month for the second time for more than a decade, predicting third-quarter surge of about 0.4%, but just a lackluster 2018 leap of about 1.4%.
Besides this, the UK currency was nearly intact on the data that market experts told demonstrated that the British economy was soaring better than anticipated after a slow start to this year, even considering the effect of one-off factors.
Since the June 2016 vote to abandon the European bloc the British economy has speeded down, its annual surge rate dived from top spot among the Group of Seven wealthy countries.
Some business polls have demonstrated that companies postponing investment plans, while the terms on which the United Kingdom will escape the European Union, will be still unclear, thus posing the risk of disruption to currently existing trade pacts.
Monday's data revealed that in contrast with 2017, GDP surge in July alone jumped by 1.6%, while it managed to ascend by 0.3% since June, surpassing survey estimates for 1.4% annual surge as well as a 0.2% monthly profit.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.