In Greece prices continued to fall in June, but at a slower rate. Prices fell by 1.5% in June compared with June 2013.
Unemployment in Greece has remained high as the government has been forced lay off workers in a bid to adhere to austerity measures placed on Greece by the ECB to bail out the Greek economy. Higher unemployment leads do lower demand for goods and services pushing prices lower.
Yesterday public sector workers are held a 24-hour strike, shutting down public services and leaving state-run hospitals accepting only emergency cases to protest austerity policies imposed in return for the country's bailout.
The Federal Reserve released the minutes from their latest policy meeting.
The minutes stated that its quantitative-easing programme is on track to end in October. As a result there will be less new money flowing into the markets to help stimulate the US economy.
However the Federal Reserve is also worried about America's labour market and the impact that raising interest rates will have on unemployment rates in the US. They believe there is still a great deal of spare capacity and the headline unemployment of 6.1% is not a true reflection of the labour market. They cited the fact that a number of workers are still employed part time and there is a low labour participation rate.
Overnight Australia’s unemployment rate rose to a higher-than-expected 6% in June from 5.9% in May as more people than anticipated began looking for work. Economists had expected the figure to remain unchanged; as a result we say the Australian dollars weaken.
This afternoon we have the Bank of England interest decision, expected to remain unchanged at 0.5%. In the US we have initial jobless claims expected to be slightly higher at 316K for this week.
12:00- GBP- Bank of England interest rate decision expected to be unchanged at 0.5%
13:00- USD- Initial jobless claims higher from 315K to 316K
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