USD

The U.S. economy slowed more than previously estimated in the first quarter amid the weakest consumer spending in nearly five years, but growth appears to have since regained momentum on the back of a robust labor market and tax cuts. Gross domestic product increased at a 2.0 percent annual rate in the January-March period, the Commerce Department said on Thursday in its third estimate of first-quarter GDP, instead of the 2.2 percent pace reported last month. A $1.5 trillion income tax cut package, which came into effect in January, is expected to spur faster economic growth in the second quarter, putting annual GDP growth on track to achieve the Trump administration’s 3 percent target.

GBP

European leaders told Prime Minister Theresa May on Thursday to soften some of her red lines on Brexit, warning her that time was running out to prevent Britain crashing out of the European Union without a deal. the region’s leaders expressed rising frustration over the lack of progress in the talks, just nine months before Britain is due to leave.

May has hesitated to spell out detailed plans for Britain’s departure from the EU because of divisions in her ruling Conservative Party and government over the terms of Britain’s biggest foreign policy shift in almost half a century. May has promised to resolve differences among her top team of ministers at a meeting early next month and intends to present a policy document setting out the government’s aims for a future partnership after that.

09:30 – GBP: UK GDP (YoY) Q1 expected to be unchanged at 1.2%
10:00 – EUR: Eurozone CPI (June) expected to be higher at 2.0% from 1.9%