The US dollar remained weak yesterday as investors digested the news about the latest threats from President Trump. Speaking at an event in Arizona the day before, Trump threatened to shut down the government if he did not receive funding to build the wall at the Mexican border. Further to this, the fact that the US debt ceiling will be hit by October further accentuated the remarks.
On the economic front, new home sales fell 9.4% more than the forecasts of a flat reading. However, the previous three month new home sales data was revised significantly higher offsetting the declines. Markit’s flash manufacturing PMI for the US fell to 53.3 falling below the estimates of 52.5 but services PMI rose to 56.9.
In the Eurozone, flash composite PMI continued to rise, especially with the manufacturing PMI hitting a six and a half year high. Services PMI for August, however, slipped to a 7-month low.
Looking ahead, the annual Jackson Hole symposium starts today. On the economic front, the UK’s second revised GDP estimate for the quarter ending June will be coming out. Estimates point to no change in the quarterly GDP, but business investment is expected to decline.
