UK GDP Revised Higher; Durable Goods Are Next

German and France unite on Greece; UK GDP contracted less than initially expected; Gold ignores Bullard's comments. Focus turns to durable goods orders. Thursday's Premium Intermarket Insights include EURUSD, AUDUSD, silver and oil.

The greenback is stronger in the ongoing session against all majors except JPY. European equities are losing about 0.25%.

Germany and France agreed on a united front towards Greece telling Athens that it should not expect any leeway on its bailout terms unless it sticks to tough reform targets, Reuters reports. German chancellor Merkel can prove her stance as she meets Greek PM Samaras in Berlin today.

Sterling was under pressure after MPC member Martin Weale said that he would prefer a rate cut over more QE. Nevertheless, he does not think monetary stimulus is needed at present and that it must be clear that a rate cut is the right thing to do.

UK Q2 GDP growth was revised higher as expected to -0.5% from initial -0.7% q/q and to -0.5% from -0.8% y/y. In case of the annual print the improvement was bigger than anticipated. Despite the revision, the outlook is still highly uncertain as household consumption expenditures, industrial production and service sector all contracted. GBPUSD fell to 1.5821 but quickly erased a portion of its losses and trades around 1.5840.

Gold trades slightly lower today but the reaction to yesterday's comments made by St. Louis FED president James Bullard has been minimal. He pointed out that the US economic outlook had brightened and the data has been somewhat stronger since the FOMC policy meeting, MNI reports.

American reports are limited to durable goods orders at 8:30 am ET that are expected to grow 2.5% in July from previous 1.3%. Core orders should rise 0.5% after 1.4% decline seen in June.

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