Bank of England Governor Andrew Bailey said last week that rates could remain at peak levels for longer than traders currently expect. Concerns that the British economy is heading for a recession mounted sharply following a surprise 50 bps rate hike by the BoE in June which means Sterling remains in uncertain times.
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The preliminary readings of Germany’s inflation per the Consumer Price Index rose to 6.4% YoY in June from 6.1% in May and 6.3% expected. On the same line, the European Central Bank’s favourite inflation gauge, namely the Harmonised Index of Consumer Prices, also jumped to 6.8% on a yearly basis from 6.3% prior and 6.7% market forecasts. Further, the preliminary Eurozone HICP inflation number rose to 0.3% MoM versus 0.0% expected and prior while the yearly figures eased to 5.5% from 5.6% market forecasts and 6.1% previous readings.
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On Friday the US Personal Consumption Expenditure Price Index showed the smallest yearly gain in six months as it rose less than expected, coming in at 0.3% MoM, below the prior’s month 0.4%, while annual-based figures diminished to 4.6% from 4.7%. Headline inflation rose by 3.8% YoY, below April’s 4.4%, while PCE climbed 0.1% month-over-month, lower than 0.4% in the previous report.
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15.00 ISM Manufacturing PMI (Jun) Exp. 47.2 Prev. 46.9