GBPUSD Macro Review 8/2/19

Economic headlines have shifted markets this week, however, longer term trends are not necessarily broken. Dollar and Gold still bullish and Pound is down.

While both US Treasuries and UK Gilts continue to lower yields, pace of Treasury declines have led to sharp decrease in yield value comparatively to the Pound.

Below are some sample short term yield comparisons.

A similar story is playing out on the long end of the curve, resulting in a parallel downshift in the yield curves of both economies.

US inflation seems to have reacted similarly to rates, but UK inflation rebounded out of range back into an uptrend.

Equities dropped from trade war headlines and US economic news. Look to be entering a range.

Nonfarm payrolls down but fell mostly in line with expectations.

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