GBP
UK consumer price index inflation report fell to 0% from 0.1% in May, clothing
and food prices were the main contribution to the change along with a smaller
rise in air fares in June from this time last year.

Inflation is expected to remain low for the time being but bank expert’s say
that it should start to pick up by the end of the year. Core inflation which
includes energy, food, alcohol and tobacco prices fell to 0.8% from 0.9% –
lowest seen since 2001.

GBP
UK consumer price index inflation report fell to 0% from 0.1% in May, clothing
and food prices were the main contribution to the change along with a smaller
rise in air fares in June from this time last year.

Inflation is expected to remain low for the time being but bank expert’s say
that it should start to pick up by the end of the year. Core inflation which
includes energy, food, alcohol and tobacco prices fell to 0.8% from 0.9% –
lowest seen since 2001.

Yesterday saw the pound strengthen against the dollar and euro, as Mark Carney
stated that an interest rate rise is near, he said the banks would be able to
raise rates due to ‘consistent growth above trend.

EUR
Greek PM is battling to convince MPs from his own government to back a third
bailout offered by the euro zone leaders. Greek Prime Minister Alexis
Tsipras said yesterday he does not believe in a bailout offered by eurozone
leaders – but is willing to implement it. If the deal fails the Greek banks
could collapse and Greece may be forced out of the euro-zone. 

Late on Tuesday, the IMF made it public that they fiercely criticised the
bailout deal offered to Greece by the Eurozone. It said Greece’s public debt
was now “highly unsustainable” and urged debt relief on a scale
“well beyond what has been under consideration to date”. Their
proposals would of seen some of Greece’s enormous debt written off.

The split between the IMF and Greece’s European creditors over how best to deal
with the country’s debt crisis has been hinted at before, but this is the first
time such a disagreement has been made public.

One senior IMF official said the fund would only participate in a third bailout
for Greece if European Union creditors produce “a clear plan”. The
current deal “is by no means a comprehensive, detailed agreement”,
the official said. It comes just hours before the Greek parliament is due to
vote on a raft of economic reforms demanded of the Euro group over the weekend
as a condition of a third Greek bailout.

USD
Sales at U.S. retailers unexpectedly dropped in June, curbing optimism about
the strength of the rebound in consumer spending during the second
quarter. Purchases decreased to -0.3 percent after a 1 percent advance in
May which was smaller than previously reported.

 Key Announcements

09:30 – GBP : Unemployment Rate (May) expected to
remain unchanged at 5.5% 
15:00 – USD: US FED Chair Janet Yellen testifies