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.
The just released BoE figures showed that the number of mortgage approvals increased higher than market consensus for June, indicating that housing activity has improved amid supportive economic factors, notably robust wage earnings growth, elevated consumer confidence levels and record low mortgage interest rates. Going forward, investors will eye GfK’s consumer confidence report, scheduled tomorrow for an early indication of consumer buying behaviour in the current month.Across the Atlantic, the US Fed’s monetary policy meeting statement due later today will attract significant market attention for any explicit hints on the timing of an interest rate rise. In Europe, GfK’s forward looking indicator suggested that morale among German consumers steadied going into August.