Germany has released disappointing industrial production and factory orders data for June as both missed analysts’ predictions. The value of new orders fell by 4 per cent, with German Minister of Finance Olaf Scholz suggesting global trade tensions were affecting exports and damaging the world’s third largest exporter. This also suggests a wider economic slowdown in the Eurozone.
Meanwhile, concerns over a likely no-deal Brexit continue to weigh on the Pound. The UK currency yesterday, 6 August slumped to $1.2920 – its lowest level against the greenback in 11 months – following comments from Bank of England Governor Mark Carney last Friday, 3 August and Secretary of State for International Trade Liam Fox over the weekend.
Finally, my focus will shift to China and its trade data due to be released overnight. Any signs that the world’s largest exporter has been hit by US tariffs will only amplify fears of slowing global economic growth and the Dollar will continue to strengthen.