GBP
Yesterday mortgage approvals fell to an 11 month low confirming that the
lending market was already losing some steam before last week’s new Bank of
England curbs.

The bank reported yesterday that there were 61,707 mortgage approvals in the
month, an 18.7% decline from their recent peak in January and the lowest
monthly figure since June 2013.

Ratings agency Fitch expect strong growth of 3% in the UK this year, slowing to

GBP
Yesterday mortgage approvals fell to an 11 month low confirming that the
lending market was already losing some steam before last week’s new Bank of
England curbs.

The bank reported yesterday that there were 61,707 mortgage approvals in the
month, an 18.7% decline from their recent peak in January and the lowest
monthly figure since June 2013.

Ratings agency Fitch expect strong growth of 3% in the UK this year, slowing to
2.5% in 2015 and 2.3% in 2016.  Investment Bank Goldman Sachs have
upgraded their forecast for UK economic growth with their analysts
predicting GDP growth of 3.4% revised higher from a previous forecast
of 3.0%

EUR
Inflation in the Eurozone remained unchanged at 0.5% in June. It is the ninth
month running that Eurozone inflation has been below the target of just below
2%. 

There is one sign that the Eurozone is moving away from deflation with core
inflation (which strips out volatile measures such as food, energy, alcohol and
tobacco) moving up to 0.8% from 0.7% previously.

Food, drink, and tobacco prices across the Eurozone have actually fallen by
0.2% this month compared with June 2013. The price of manufactured goods were
flat, year-on-year, and energy prices crept higher. Inflation in the service
sector picked up, to 1.3% in June compared to 1.1% the previous month.

USD
Ratings agency Fitch  have cut their forecast for growth in the US
this year to just 2%, from 2.8%, having seen the unexpectedly deep fall in GDP
in the first three months of the year. Also pending Home sales in the
US hit an 8 month high, its highest level since September.

Key Announcements:
8:30 – GBP – Markit Manufacturing for June, expected to fall to 56.8
9:00 – EUR – Unemployment Rate for May expected to be unchanged
at 11.7%
13:45 – USD – ISM manufacturing index June expected to be higher at
55.9 

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