Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
US Stock Futures Edge Higher Ahead of Key Federal Reserve Decision 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
U.S.-Iran Peace Deal Extends Gulf Ceasefire, Reopens Strait of Hormuz 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Myanmar Economic Outlook Hit by Fuel Price Shock as World Bank Cuts Growth Forecast 
Oil Prices Recover Slightly as U.S. Crude Inventories Fall, But Iran Deal Caps Gains 
China Industrial Output Beats Forecasts as Domestic Demand Weakens 
The United Kingdom’s gilt prices remained tad higher during European session Monday as investors wait to watch the country’s 10-year auction, scheduled to be held on August 8 by 09:40GMT. However, market participants are now defying the gross domestic product (GDP) for the second quarter of this year, which is expected to rise from its previous reading, due to be released on August 10 by 08:30GMT.
The yield on the benchmark 10-year gilts, slid nearly 1 basis point to 1.32 percent, the super-long 30-year bond yields also fell close to 1 basis point to 1.76 percent and the yield on the short-term 2-year too traded nearly 1 basis point lower at 0.74 percent by 09:30GMT.
The end of the this week brings the latest GDP figures. Alongside the new monthly GDP data for June, which are expected to show a 0.2 percent m/m rise, the ONS will release the first estimate for Q2. Following a slowdown at the start of the year, GDP is set to have risen by 0.4 percent q/q in Q2. With a very sharp pick-up in consumer spending on the high street of 2.1 percent q/q that quarter, the expenditure breakdown will probably show that overall consumer spending growth rose from 0.2 percent q/q in Q1. Investment growth should recover after a 1.3 percent q/q slump in Q1, but net exports might remain a drag on growth.
Among other data releases, Thursday will bring the RICS Residential Market survey, which will probably signal that housing market sentiment remained subdued going into the second half of the year, while Tuesday brings the BRC Retail Sales Monitor. After a jump last quarter, which to some extent seems to have been driven in part by the warm weather and the World Cup, it will be interesting to see if the momentum was maintained at the start of Q3.
Meanwhile, the FTSE 100 fell 0.22 percent to 7,642.25 by 09:35GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -136.41 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
