US Economic Growth Picks Up

USD

U.S. economic growth accelerated in the first quarter, the government confirmed yesterday, but the export and inventory boost to activity masked weakness in domestic demand, some of which appears to have prevailed in the current period. Gross domestic productivity increased at a 3.1% annualized rate, also driven by more spending on highways and defense, the Commerce Department said in its third reading of first-quarter GDP. That was unchanged from its estimate last month and in line with economists’ expectations. The economy grew at a 2.2% pace in the October to December period.

The US economy will mark 10 years of expansion in July, the longest on record. But momentum is slowing, with manufacturing struggling, the trade deficit widening again.

EUR

European Commission date on Thursday showed the Euro zone economic sentiment dropped to its lowest point in nearly three years in June, as confidence fell markedly in the bloc’s largest economies, with Germany and Italy seeing the worst of it.

The Commission said that its main indicator of economic confidence dropped to 103.3 points in June from 105.2 a month earlier, reaching its lowest level since August 2016. The fall was also bigger than market forecasts of a fall to 104.6

Key Announcements

09:30 - GBP: UK GDP (QoQ) Expected to to remain unchanged at 0.5%
10:00 - EUR: Eurozone CPI (YoY) June expected to be unchanged at 1.2%