Daily Market Report – 20/07/2015

USD
U.S. consumer prices rose for a fifth straight month in June as the cost of
gasoline and a range of other goods increased, further signs of firming
inflation that strengthen the case for an interest rate hike this year.

The Consumer Price Index rose 0.3 percent last month after increasing 0.4
percent in May. Last month’s increase pushed the year-on-year CPI rate into
positive territory for the first time since December. The energy-driven

USD
U.S. consumer prices rose for a fifth straight month in June as the cost of
gasoline and a range of other goods increased, further signs of firming
inflation that strengthen the case for an interest rate hike this year.

The Consumer Price Index rose 0.3 percent last month after increasing 0.4
percent in May. Last month’s increase pushed the year-on-year CPI rate into
positive territory for the first time since December. The energy-driven
disinflationary trend appears to have run its course, with producer prices
rising in June for a second straight month.

Housing starts surged in June and building permits soared to a near eight-year
high. Federal Reserve Chair Janet Yellen this week affirmed the U.S. central
bank was keen to start raising interest rates later this year.

In a separate report, the Commerce Department said ground breaking for new
homes increased 9.8 percent to a seasonally adjusted annual pace of 1.17
million units in June. Permits for future home construction increased 7.4
percent to a 1.34 million-unit rate, the highest level since July 2007.

The acceleration in housing activity should ease concerns that economic growth
slowed at the end of the second quarter after a surprise drop in retail sales
in June and continued weakness in manufacturing.

EUR
Greek banks have reopening after three weeks of closures sparked by the
deadlock over the country’s debt. Athens reached a cash-for-reforms deal
aimed at avoiding a debt default and an exit from the Eurozone.

Several restrictions remain in place, including a block on money transfers
abroad, and Greeks also face price rises with an increase in VAT. Meanwhile,
Angela Merkel has said Germany is prepared to consider further debt
concessions to Greece.

 

Key
Announcements

09:30 – GBP: UK Public Sector Borrowing for
June