Yesterday we had the the Bank of England’s policy vote with All nine Bank of England policymakers voting to hold interest rates at 0.5% in July. There was however signs some Monetary Policy Committee members are edging closer to backing a rate rise. The turmoil around the Greece debt talks is playing a key factor in voting to hold rates. . Economists said three of the MPC's nine members might vote for a rate hike in August, getting the ball rolling for a majority to back an increase later this year or in early 2016. Overall it is suggested that a hike may come around towards the end of the year.
Figures yesterday showed that U.S. existing home sales hit the highest level since 2007 in June added to expectations for the Federal Reserve to raise interest rates in the coming months. The National Association of Realtors reported yesterday that U.S existing home sales increased by 3.2% to 5.49 million units last month from 5.32 million in May. Home sales were expected to rise 1.2% to 5.40 million units in June.
The euro remained vulnerable yesterday as the Greek parliament was set to vote on a second set of reforms needed to secure the country's bailout deal. The European Central Bank (ECB) is said to have increased its cash lifeline to Greek banks by €900m (£630m) just hours before the vote started. The ECB has reportedly offered more help to Greece's struggling banks through Emergency Liquidity Assistance (ELA). If lawmakers agree to the financial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors. Greece's next major deadline is August 20, when it must pay €3.2 billion owed to the European Central Bank, followed by a payment of €1.5 billion to the International Monetary Fund in September.
GBP: 9:30 – UK Retail Sales (Mom) (June) Expected
to rise to 0.3% from 0.2%
GBP: 9:30 – BBA Mortgage Approvals (June) Previous 42.5K
USD: 13:30 – Continuing Jobless Claims (July 10) Expected to rise to 2.225Million from 2.15Million
USD: 13:30 – Initial Jobless Claims (July 17) Expected to fall to 280K from 281K