What’s been happening? The pound was on mixed form on Friday, although considering the results of the latest data GBP was escaping quite lightly. Consumer confidence data from GfK showed that household pessimism has now fallen to the level last seen shortly after the results of the Brexit referendum were announced. The GfK sentiment index weakened from -10 past the forecast -11 to hit -12, with Joe Staton, the company’s Head of Market Dynamics, stating ‘All bets must now be on a further drift downwards in confidence’. A string of positive data releases from the Eurozone saw the GBP/EUR exchange rate falling as the day’s market activity came to an end on Friday. Sentiment towards the currency bloc economy hit a ten year high in July, with the economic confidence indicator climbing from 111.1 to 111.2 instead of falling to 110.8. French GDP clocked in at 0.5% in the second quarter, while growth of 0.9% for Spain meant the nation’s economy had returned to the level seen before the financial crisis. The good news kept on coming in the afternoon, after German consumer price index figures bettered forecasts. Prices grew 0.4% in July - twice the pace forecast - pushing year-on-year CPI up from 1.6% to 1.7%, despite forecasts of a weakening to 1.5%. Meanwhile, disappointing second-quarter US GDP figures allowed the GBP/USD exchange rate to notch up strong gains. Annualised second-quarter growth was expected to clock in at 2.7%, but instead hit 2.6%, with the first quarter’s growth rate revised down to 1.2%. | 
