EURGBP was up on Friday morning in Asia, as the UK released multiple economic data that appeared less promising. UK GDP grew at 4.8% from April to June, bouncing back from -1.8% in the previous quarter. However, it is still 4.4% lower compared with its pre-pandemic level. Moreover, UK’s industrial production contracted by 0.7%, way below the forecast at +0.3%. On the other hand, Germany’s inflation data showed that inflation in July was 3.8% on a yearly basis, the highest level since December 1993. Moreover, the EU bloc is accelerating its vaccination, at twice the rate in the US and the UK.
In the US, the producer price index (PPI) increased by 1.0% from last month, the same level as in June. Moreover, labor market data also showed that claims for unemployment benefits fell again last week. Investors remain vigilant for any signs of monetary policy adjustments. DXY Index fluctuates around the 93-level.