Already released this morning, German CPI inflation printed at 2.2 percent (previous 2.4%). EU Harmonized CPI released as expected at 2.5 percent.
UK Gross Domestic Product reported above the market consensus at 0.4 percent (forecasted 0.2%). This has further reinforced a key member of the Bank of England Pill Pares comments yesterday and has pushed back the odds of a 25-basis point rate cut in August.
Later on today, we have a number of key US economic data releases. The number of people who have filed for unemployment benefits is set to come in at 236k.
US CPI inflation will be closely watched by investors, the headline rate is expected to ease to 3.1 percent. Markets are still pricing in that the Federal Reserve would begin with reducing interest rates by 0.25 percent in September, however future economic data releases will help determine the exact date.
GBPEUR rallied to a one-month high, and GBPUSD achieved an eleven-month high after the ONS (Office of National Statistics) showed that GDP rose by 0.4 percent during the month of June – highlighting the UK economy is improving and consumer spending is finally on the rise.
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