It’s a busy week for economic numbers as well as central bank decisions. We’ll also find out who the last 2 candidates are in the Tory party leadership race.
On the central bank front, both the BoE and Federal Reserve will be meeting and announcing updates to their policy stance. No change is expected from the Bank of England but the market is applying a surprisingly high probability that the Fed lower interest rates. This would be a surprising move considering they only recently increased rates last December. This would be one of the shortest periods in history between which the Fed have increased rates and then gone on to lower them. Both central bank meetings are highly anticipated and could create a flurry of volatility with the Fed announcing on Wednesday evening and the Bank of England Thursday lunchtime. The Bank of Japan will also meet this week with no change to policy expected either.
On the economic data front the UK will feature strongly once again. Wednesday sees the latest inflation print while Thursday hosts another retail sales report. Elsewhere, Germany’s closely watched ZEW sentiment index will be released as well as China house price index for May. In addition, by the end of the week, the Conservative Party should have whittled it down to 2 final candidates for their next leader!
Written by Viv Savani. 9:11am, June 17th 2019
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