GBP
 Last week we saw GBP gain strength on the back of the BOE suggesting interest
rates could increase as early as January 2015. BOE Deputy Governor said an
interest increase “will be a symbolic step, because it will be an indication
that we are on the road back to normality, I would welcome us getting on to the
path of normalization, as a demonstration that the economy is healing,”.
 
Average U.K. house prices rose 3.9%in May to a six-year high of 184,464 pounds.

GBP
 Last week we saw GBP gain strength on the back of the BOE suggesting interest
rates could increase as early as January 2015. BOE Deputy Governor said an
interest increase “will be a symbolic step, because it will be an indication
that we are on the road back to normality, I would welcome us getting on to the
path of normalization, as a demonstration that the economy is healing,”.
 
Average U.K. house prices rose 3.9%in May to a six-year high of 184,464 pounds.
Despite this, there are still divisions across the country, and government data
that show annual price growth in London was 17 % in March compared with 8 % for
the whole country.
 
Britain’s credit rating has been restored to AAA: Stable by Standard &
Poor’s tonight; meaning the UK once again holds a top-notch credit rating with
one of the Big Three rating agencies. S&P, which unlike Fitch and Moody’s
did not downgrade the UK during the crisis, removed the negative rating.
 
S&P also predicted that the UK would expand by nearly 3% this year, and
another 2.5% in 2015
 
EUR
 New data from Eurostat on Friday showed that the number of employed people
increased by 0.1% in the euro area in January-March, compared to
October-December, and by 0.2% in the wider European Union
 
The Eurozone’s trade balance declined in April as imports fell 0.5%
month-on-month and exports dropped 0.2%. However, the somewhat larger decline
in imports relative to exports was enough to send the trade surplus higher to
EUR 15.8 billion in April from an upwardly revised 15.4bn in March
 
 Today
 This morning we have Eurozone Inflation for May expected to come show prices
falling 0.1%.This fall in inflation is a major reason behind the recent fall
cut in interest rates by the ECB.
Later on in the afternoon we have US industrial production for May expected to
be much stronger at 0.5% after a contraction in April.
 
Key Announcements:
 10:00 – EUR- Eurozone CPI May Expected to shrink to 0.1%
 14:15 – USD- Industrial Production May expected to rise to 0.5%

Our dealers are available via e-mail ([email protected]) or by phone (020 3051 1226).