The just out revised reading of UK GDP showed that the economy expanded at a faster pace than previously estimated for the first quarter, alongside expansion in business output and higher consumption levels. The upward revision is likely to bring forward expectations of an interest rate rise should fundamentals continue to improve in the coming months.Going forward, the flash estimate of consumer price inflation in the Euro zone and the Conference Board’s update on US consumer confidence will be in focus today. However, most market attention remains focused on Greece as the cash-strapped nation looks set to default on its debt payment to the IMF.
The uncertainty surrounding Greece’s future in the Euro bloc continues to grapple investors, with the Euro suffering losses against the majors. Greece is facing a political and financial crisis after it announced that it will hold a referendum this weekend to decide on whether to accept the rescue funding offered by its international creditors.On the macroeconomic front, data released this morning has revealed that Britain’s mortgage approvals fell unexpectedly for May and consumer credit grew at a slower than anticipated pace for the same month. Though developments in Greece are likely to influence market sentiment going forward, today’s Euro zone indices, German consumer price inflation and US pending home sales data will also attract modest market attention.
Prime Minister, David Cameron yesterday secured an agreement for technical talks between the UK and European Union officials over the next six months on reforms and fundamental changes, ahead of a referendum to be held by the end of the 2017. In the absence of any significant domestic economic indicators today, a speech by the BoE Governor Mark Carney will be in the limelight.Meanwhile, Greece is heading closer to defaulting on its payment to the IMF next week after yesterday’s meeting of Euro group officials ended again with no agreement. The creditors have called for a weekend meeting to avert a debt default. The Reuters/Michigan consumer sentiment data will attract some market attention in the US.