The economy of the US grew at a weaker than expected 2.4 percent in the second quarter, but the first quarter was revised back up to 3.7 percent on the strength of stronger-than-projected inventory rebuilding. But the recession years were revised downward rather significantly for this late in the cycle.
Monday's release of the ISM manufacturing index will give a more complete picture of the sector and if early forecasts are any indication then we could see dollar support return on risk aversion.
The ECB held a cautious outlook for the economy and expects banks to tightening borrowing standards further over the coming month as the financial system remains fragile.
Taking a look at the economic docket in the world’s third's largest economy last week, housing starts advanced 0.6 percent, while small business confidence pushed higher.
Government spending has been a key driver of the UK recovery, hinting that the significant retrenchment on the fiscal will call for monetary policy to remain at the current, accommodative setting for the time being to prevent a slide back into recession.
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