The just released survey data indicated that activity in Britain’s manufacturing sector expanded at a slightly better than anticipated pace for July. Later this week, the BoE will hold its monetary policy meeting, with the minutes likely to show that rate setters were divided over the decision on whether to raise interest rates, with policy hawks pushing for an increase.In Europe, the final manufacturing PMI from Euro zone and its largest economy for last month came in ahead of earlier estimates despite concerns surrounding the Greek debt crisis earlier in July. Across the Atlantic, the spotlight shifts to ISM manufacturing gauge and core personal consumption expenditure data, due later today which could bring in fresh perspective to the timing of the US Fed’s interest rate decision.
The latest survey by the GfK revealed that consumer morale in the UK slowed in July, as concerns surrounding Greece and a rise in global uncertainty weighed on consumer outlook. In the coming week, the BoE’s interest rate decision meeting along with key economic releases, including UK’s private sector activity and trade balance data, will attract significant market attention.In Europe, inflation reading from the Euro area will dominate headlines, with markets looking for cues whether ECB’s aggressive policy measures have helped improve the pricing environment. Across the Atlantic, investors will keep a tab on a wave of economic releases including Chicago PMI, consumer confidence and labour cost index for the second quarter.
With a thin economic calendar day in the UK, trading in Sterling is likely to be driven by global macro economic and political developments. Going forward, a consumer confidence report by the GfK group scheduled early tomorrow could spur gains in the Pound if the print surprises to the upside, as improving wage growth in recent months might possibly have shored up confidence.Across the Atlantic, the initial estimate of second quarter GDP will be published later in the day, amid wide optimism that the economy has recovered strongly having been adversely affected by a harsh winter in the first quarter. In Europe, German consumer prices data and economic and business sentiment reports in the Euro zone are slated for release in a short while.