(MENAFN– ecpulse) European markets are in for a busy day, with major fundamentals scheduled to be released on by the world`s largest economies.
The European sentiment indicators and Germany’s inflation data are the two most important numbers, but all eyes will be on the EU summit, which is expected to find a consensus on who will be the next president of the European Commission.
In UK, the most important data will be the final reading of first-quarter Gross Domestic Product (GDP) figures, and the consensus expects 0.8 percent quarterly growth. That would imply an increase of 3.1 percent from year ago, a healthy rate by any measure.
the Bank of England Governor Mark Carney emphasized that wage growth has been surprisingly muted and that the system still has slack, meaning inflation isn`t a big risk, therefore, damping speculation interest rates need to rise.
Euro-Area’s June Confidence Survey
Focus shifts to a busy European agenda today, as traders continue to anticipate the economic progress in the single-currency bloc. First class confidence reports for the Eurozone are expected to show the overall sentiment status across euro markets brightened in June.
The European Commission’s survey is not expected to provide big surprises, as different confidence surveys on sentiment across the bloc have also been released. These previous results suggest that France’s stagnation continues, expectations in Germany have cooled somewhat but the periphery’s mood continued improving.
- Business Confidence likely rose to 0.40 vs. 0.37 a month ago
- Economic Confidence probably edged up to 103.0 vs. prior 102.7
- Industrial Confidence likely unchanged at -3.0 in June
- Consumer Confidence likely unchanged at -7.4
- Services Confidence expected at 4.0 vs. 3.8 a month earlier
German June Inflation CPI
Investors will also be anticipating preliminary inflation data from Eurozone’s largest economy, Germany. The Consumer Price Index (CPI) for June is expected to show an increase of 1 percent from year ago, slightly higher than May’s post-crisis low of 0.9 percent.
The inflation rate is currently alarmingly low and far below the European Central Bank’s (ECB) 2 percent target.
The euro reversed its losses to the upside driving the EURUSD pair to trade around $1.36272, after opening at $1.36101 while recording the highest level of $1.36291 and lowest of $1.36082.
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