The British pound managed to post some modest gains on Tuesday after data showed that average earnings increased 2.9% on the year excluding bonuses in July. The data beat estimates and the unemployment rate held steady at 4.0%.
The pound sterling was giving up the gains from Monday following Barnier’s comments about reaching a Brexit deal in the next four to six weeks. The GBP eased with lack of any follow up on the Brexit developments.
The German ZEW economic sentiment report showed the index improved to -10.6, missing estimates of a -13.5 decline.
The economic data for the day will start off with the industrial production numbers for the Eurozone. Economists polled expect industrial production to fall 0.5% on the month. This extends the previous month’s decline of 0.7%.
The NY trading session will see the U.S. producer prices index coming out. PPI is forecast to rise 0.2% on the month after a flat print previously. Core PPI is expected to also rise 0.2%.
FOMC member, Brainard will be speaking later in the day. Her comments come ahead of the FOMC meeting later this month.
