Auto parts drive factory sales up

Key Movers

urozone factories performed better than most expected in July. Industrial output was 4.1% and the economic recovery continued throughout Europe. There are a couple of concerns. Industrial production in June was 9.5%, and the July output implied there was slow down. With increased cases of COVID-19 across Europe, and new lock down measures being put in place, the Eurozone is at a crossroad.Last night, despite mounting pressure from the European Union, Parliament backed Prime Minister Boris Johnson’s internal market bill. MP's defended the bill and said that it has necessary safeguards to protect Northern Ireland and the rest of the United Kingdom in-case Brexit negotiations break down further. Johnson has suggested that the European Union are using the withdrawal treaty agreed in January to potentially implement trade barriers between Northern Ireland and mainland Britain. It is clear to see the fractious relationship between the United Kingdom and the European Union is strained.The Australian dollar is slightly stronger this morning when valued against the greenback, just falling short of the 0.7300 level, despite the rise in Gold prices. Higher risk appetite has lent some support to the Kiwi dollar yesterday which saw selling pressure on the Aussie. While the Kiwi is up 0.6% to over 0.6700, the AUD is barely higher to start the week, seeing NZD/AUD up 0.5% to about 0.9200.