Last week we saw GBP gain strength on the back of the BOE suggesting interest rates could increase as early as January 2015. BOE Deputy Governor said an interest increase “will be a symbolic step, because it will be an indication that we are on the road back to normality, I would welcome us getting on to the path of normalization, as a demonstration that the economy is healing,”.
Average U.K. house prices rose 3.9%in May to a six-year high of 184,464 pounds. Despite this, there are still divisions across the country, and government data that show annual price growth in London was 17 % in March compared with 8 % for the whole country.
Britain's credit rating has been restored to AAA: Stable by Standard & Poor's tonight; meaning the UK once again holds a top-notch credit rating with one of the Big Three rating agencies. S&P, which unlike Fitch and Moody's did not downgrade the UK during the crisis, removed the negative rating.
S&P also predicted that the UK would expand by nearly 3% this year, and another 2.5% in 2015
New data from Eurostat on Friday showed that the number of employed people increased by 0.1% in the euro area in January-March, compared to October-December, and by 0.2% in the wider European Union
The Eurozone’s trade balance declined in April as imports fell 0.5% month-on-month and exports dropped 0.2%. However, the somewhat larger decline in imports relative to exports was enough to send the trade surplus higher to EUR 15.8 billion in April from an upwardly revised 15.4bn in March
This morning we have Eurozone Inflation for May expected to come show prices falling 0.1%.This fall in inflation is a major reason behind the recent fall cut in interest rates by the ECB.
Later on in the afternoon we have US industrial production for May expected to be much stronger at 0.5% after a contraction in April.
10:00 - EUR- Eurozone CPI May Expected to shrink to 0.1%
14:15 - USD- Industrial Production May expected to rise to 0.5%
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