UK: Performance of the economy in Q3 could be pivotal – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that the UK markets focus will be on the third estimate of Q2 GDP which is out on Friday.

Key Quotes

“Alongside that we will get the first look at how activity in the service sector is shaping up at the start of Q3 in the form of the July index of services. This could be quite important—as service sector output is almost 80% of total output, this will be a key input to Q3 GDP growth estimates. The performance of the economy in Q3 could very well be pivotal when it comes to the MPC decision in November. Money and credit data are out on Thursday. The BoE’s favourite measure of money supply jumped 14.7% 3m saar in July so it is worth watching if this is a blip or sustained.”