Money News Overview Tuesday 14th May: June rate cut dampened by wage growth in the UK.

The chance of a June rate cut for the Bank of England have been dampened, due to the current pace of wage growth in the UK.

Early this morning the UK released their employment figures; The major talking point of these releases is the pace in which wages in the UK are rising. Markets have seen the wage growth come in 6% higher than the three months to March compared to this time last year.

Looking elsewhere today in the markets, Germany has released its inflation reports which have come in as expected at 2.4%.

For the US, Producer price Index is set to be released later today. The expectation is that Core PPI will come in unchanged year on year at 2.4%.

Looking ahead this week the focus will be on the US to see where their inflation reports come in, it is widely expected that there will be a small decline to 3.4% (from 3.5%).

This will be followed by the ECB on Friday where inflation is expected to come in unchanged at 2.4%, investors will keep a close eye on this as a rate cut for the ECB looks closer than ever.

As for the currency markets, the pound has continued to stay flat against both the euro and the dollar, but with major inflation data releases markets could see some volatility.

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