EUROPEAN SESSION

In the European session, the only highlight was the UK GDP report. The data pointed to marginal growth in the UK economy for the month of May at 0.1%, driven by a rebound in the services sector for the most part. The three-month running monthly GDP also showed a growth of 0.7%, beating the expected 0.5% estimate. The data doesn’t change anything for the Bank of England, with traders still expecting a rate hike by year-end. 

AMERICAN SESSION

In the American session, we get the US Retail Sales and Jobless Claims data. Retail Sales M/M is expected at 0.2% vs 0.9% prior, while the Ex-Autos M/M measure is seen at -0.1% vs 0.8% prior. The Control Group M/M is expected at 0.5% vs 0.7% prior. Retail Sales is a volatile indicator and although it’s a market-moving release, it rarely changes trends and most of the time the reaction is faded.

Initial Claims are expected at 217K vs 215K prior, while Continuing Claims are seen at 1817K vs 1814K prior. The US labour market remains stable and not a source of concern for the Fed. 

CENTRAL BANK SPEAKERS

• 16:30 GMT/12:30 ET – Fed’s Logan (hawkish – voter)
• 17:25 GMT/13:25 ET – Fed’s Schmid (hawkish – non voter)

This article was written by Giuseppe Dellamotta at investinglive.com.



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