GBP
The Bank of England report that the total net lending to individuals increased
by £3.8 billion last month. This beat forecasts for £3.0 billion and up from
£3.1 billion in April. The number of final mortgage approvals rose to 66,580 in
June from 64,830 the previous month. Economists had expected mortgage approvals
to rise to 66,000 last month. News released yesterday showed that the UK
economy grew at 0.7% over the last quarter. Currency analysts are now

GBP
The Bank of England report that the total net lending to individuals increased
by £3.8 billion last month. This beat forecasts for £3.0 billion and up from
£3.1 billion in April. The number of final mortgage approvals rose to 66,580 in
June from 64,830 the previous month. Economists had expected mortgage approvals
to rise to 66,000 last month. News released yesterday showed that the UK
economy grew at 0.7% over the last quarter. Currency analysts are now
predicting an interest rate rise towards the end of the year. The Bank of
England will raise rates to ensure the rate of economic growth is steady and
healthy.

EUR
Greek Prime Minister Tsipras has said that he disagrees with the bailout
proposals and will fight to overturn it. He also warned that that Greece’s
Eurozone membership is still up in the air until the third bailout is agreed.
Speculation is now growing that former Greek finance minister ‘Yanis
Varoufakis’ could face prosecution over his plan to develop a parallel payment
system.

The country’s top prosecutor has asked parliament to examine complaints over
the issue (It involved hacking into the Greek tax system to create reserve
accounts associated with each taxpayer). European Commissioner ‘Pierre
Moscovici’ insisted that a Greek Exit is off the table however the prime
minister of Bavaria is less sure – he fears ‘utter chaos’ if Greece fails to
reform and leaves the Eurozone. A lot of uncertainty still with the situation
Greece is in and many doubt they will be able to meet their two next major deadlines
in August and September.

USD
The US Federal Reserve has resisted raising interest rates until it sees more
signs of labour market improvement. Interest Rates stayed the same at 0.25%. It
was stated that the labour market continued to improve, with solid job gains
and declining unemployment. On balance, a range of labour market indicators
suggests that underutilization of labour resources has diminished since early
this year. The Dollar rose against some of the major currencies yesterday as
Federal Reserve policy-makers upgraded their assessment on the labour market,
supporting some traders’ view of a rate increase in September.

U.S Mortgage Applications came in at 0.8%, it was previously at 0.1%. Pending
home sales were lower than expected at -1.8%. The U.S is to release figures on
second quarter growth today, which is expected to show that the economy
rebounded following a contraction in the first quarter after an unusually harsh
winter.

 

Key
Announcements

EUR: 13:00 – German Consumer Price Index (YoY)
(July) Expected to stay the same at 0.3%

USD: 13:30 – Gross Domestic Product Annualized (Q2) Expected to rise to 2.6%
from -0.2%

USD: 13:30 – Gross Domestic Product price index (Q2) Expected to rise to 1.5%
from -0.1%

USD :13:30 – Initial Jobless Claims (July 24) Expected to rise to 270k from 255