Bank of England Governor Mark Carney defended his decision to flag the risks of leaving the EU, hitting back at one of his toughest critics of trying to undermine the Bank. Carney said the outcome of the June 23 referendum could require the BoE to reassess how it sets interest rates, something it needed to explain to businesses and households. "It's important not just for those in financial markets to understand that, but it's important also to be straight with the British people about that," he said.
In a separate report, the Office for National Statistics said public sector net borrowing, excluding state-controlled banks, totalled £7.2 billion pounds in April. Consensus was for a print of £6.6 billion. The figures will not make for good reading for Chancellor George Osborne, as he had pledged to reduce national debt as a share of GDP. Both the Treasury and Bank of England say the economy is suffering from uncertainty about the outcome of the referendum.
Sentiment concerning the economic development of the Eurozone has also dropped. The ZEW Indicator of Economic Sentiment for the Eurozone has decreased by 4.7 points to a reading of 16.8 points. Previous reading was 21.5 with a consensus for a reading of 23.4, the Eurozone sentiment figure further compounds the gloomy outlook for the region.
09:00 - EUR: German IFO Business Climate – expected to rise to 106.9 from 106.6
14:45 - USD: US Markit Services PMI (Preliminary) expected to improve from 52.8 to 53.1