GBP
The British Pound is currently stronger against the Dollar, Euro and other currencies as we reach the final week of July.
The Bank of England’s Monetary Policy Committee (MPC) must decide next week whether to speed up the pace of interest rate rises with a rare half-point rate rise to tackle the highest inflation in 40 years.
Surging inflation has driven consumer sentiment to its lowest since records began in the 1970s, but business activity has been slower to weaken.
USD
However, there is a busier schedule in the US. House prices (May), new home sales (June) and the Conference Board measure of consumer confidence (July) are all due to release.
US new home sales data are expected to show a further slowdown in the housing market as interest rates increase. Also of interest is the Conference Board’s consumer confidence survey. Last month’s confidence fell to a 16-month low of 98.7, led by increasing concerns about inflation.
EUR
The main release of note yesterday was the German Ifo survey of business sentiment for July. Similar to last Friday’s PMI data, it missed the downside of expectations as well as being consistent with a slowdown in the Eurozone’s largest economy.
The headline reading fell to its lowest level since June 2020. The underlying data showed that the weakening in activity was broad-based across the key sectors of the economy.
There are no major Eurozone data releases today. Early tomorrow morning’s German and French consumer confidence reports are expected to show further declines.
EU energy ministers are scheduled to meet today to try and come to an agreement over measures in response to a potential energy crisis this winter.
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