The pound continued its winning run yesterday buoyed by comments from influential MPC member Andy Haldane said interest rates could "edge up" if the cost of living continues to rise.Haldane stated that "We need to look seriously at the possibility of raising interest rates to keep the lid on those cost of living increases, for now we are happy with where the rates are, we need to be vigilant for what happens next". These hawkish comments follow a similar tone taken by BoE Governor Mark Carney on Wednesday in Portugal.
The U.S. economy slowed less sharply in the first quarter than initially estimated due to unexpectedly higher consumer spending and a jump in exports. Beating expectations and providing a slightly more encouraging outlook for growth this year; gross domestic product increased at a 1.4 percent annual rate instead of the 1.2 percent pace reported last month, the Commerce Department said in its final assessment for the period on Thursday.
The Labour Department reported that the number of Americans filing for unemployment benefits last week rose slightly, but the underlying trend remained consistent with a tight labour market. The unemployment rate fell to a 16-year low in May. Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 244,000 for the week ended June 24, the Labour Department said on Thursday.
First-quarter economic growth was boosted by an upward revision to consumer spending, which accounts for more than two-thirds of U.S. economic activity. Consumer spending rose at a 1.1 percent rate, the weakest reading since the second quarter of 2013 but almost double the 0.6 percent reported last month.
09:30 – GBP: UK GDP (YoY) expected to remain unchanged at 2%