Money News Overview Wednesday 29th May: German inflation forecasted to climb

Dollar Recovers Amid Strong US Job Data, Key Speeches Ahead

Today there is no UK economic data, therefore attention will turn to the European Union releases. In Spain, retail sales fell to 0.3 percent in April showing consumer spending is decreasing and has significantly dropped from the high of the year to 1.9 percent.

Consumer confidence in France came in below the market consensus of 90. Italian data is expected to come in the green, as the sentiment of consumers towards the Italian economy slowly rises.

This afternoon, markets will keep a close eye on the German CPI inflation report to hopefully get a better understanding of the European Central Banks position on future rate cuts.

Preliminary German CPI and EU-harmonized CPI are both forecasted to rise from their previous two releases. The movement in the price of goods and services could give more reason for the ECB to hold interest rates, however this is unlikely.

Pound Sterling has been well supported by the call for a general election on July 4th. GBPEUR is trading well above its average for this year & GBPUSD achieved a 3-month high yesterday.