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Next week's key data and events - ING

"Geopolitical tensions will remain in focus given the escalating war of words between North Korea and President Trump’s US administration," argue economists at ING.

Key quotes:

"At this stage neither side look likely to back down soon, with North Korea formulating a plan to fire four missiles over Japan towards (but not directly at) the US territory of Guam."

"UK inflation looks set to push closer towards 3% next week. Whilst that might test the patience of the hawks at the Bank of England, it’s worth remembering that sterling’s fall is almost entirely responsible for this. Measures of domestically-generated inflation remain subdued – expect wage growth to stay at or below 2% next week and for much of the rest of the year."

"Tuesday’s GDP release could show another acceleration of the German economy in the second quarter, from an already high level."

"In the CIS space, Russia’s macro data for July is expected to show signs of a further recovery in domestic demand, incomes and IP."

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U.S. Treasury yields remained under pressure on Friday weighed by the lower-than-expected U.S. inflation data and the escalating geopolitical tension
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GBP/USD surges above 1.30 as DXY drops to weekly lows

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