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GDP growth for G20 likely to slow to 2.7% this year

With no major data releases from Eurozone today, markets are focused on global concerns. Recent Moody’s forecasts GDP growth for the G20 to slow to 2.7% this year, down from 2.9% in 2014. The agency is expecting only a slight pickup to 3% growth in 2016, according to its latest quarterly global outlook, which feeds into its ratings on countries’ sovereign debts. The recovery in the US and, to a lesser extent, the euro area and Japan, will be offset by the ongoing slowdown in China.
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Sterling little changed in a quite European part of session

There were no major data releases from UK today. Traders are being cautious ahead of GDP figures. Last week, Governor Mark Carney suggested rates could begin to rise around the turn of year while monetary policy committee member David Miles, once one of the strongest advocates for providing more stimulus, said in an interview published this week that the time for a hike was nearing.
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China's GDP remained steady at 7% in Q2

China's economic pulse appears to be steadying, with quarterly growth data released Wednesday beating forecasts, but that renewed long-standing concerns over data accuracy. For the second quarter, China reported gross domestic product (GDP) grew 7.0% on-year, beating forecast of 6.9% growth. Industrial output for June rose 6.8% on-year, also above expected incline by 6.0%, while last month's retail sales climbed 10.6%.
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Australian GDP rose by 0.9% in the first quarter

According to the latest release, in seasonally adjusted terms, Australian GDP increased by 0.9% in the March quarter. Analysts were anticipating smaller increase by 0.6%. The Terms of trade decreased 2.9%, and Real gross domestic income increased 0.2%. The main contributors to the increase in expenditure on GDP were Net exports (0.5 percentage points) and Final consumption expenditure (0.4 percentage points). The main detractor was Total gross fixed capital formation (–0.3 percentage points). 
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