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After a somewhat busier day on the data front yesterday, investors will have little to digest over the course of today and tomorrow as very few economic releases are scheduled in. Things pick back up next week with a mix of employment data from the UK, plus inflation from the US and two big Central Bank decisions.
Yesterday we saw Germany’s monthly industrial production figures climb 0.3% (month-over-month in April). According to the Federal Statistical office, the growth in production was driven by the rebound in construction.
Meanwhile, pound watchers digested the monthly Halifax house price index on Wednesday, which remained unchanged in May, in line with market expectations.
Later this morning, investors will see the latest GDP estimates for the eurozone – both the year-on-year and quarter-on-quarter figures are set to be released at 10am.
Speaking of our neighbouring countries, travel disruptions are set to continue this summer. Security officers at Heathrow airport are due to participate in a fresh wave of strikes this summer. The strikes are set to take place between 24 June and 27 August.
US dollar watchers saw a flurry of data from lunchtime until the end of the business day yesterday. The key ones to watch included balance of trade, exports, imports as well as several releases from the U.S Energy Information Administration.
Yesterday was a testing day for some European equities which ended the businesses day lower. Germany’s DAX and the benchmark Stoxx 600 were both down 0.2%. On the other hand, some Spanish stocks saw success, with Spain’s IBEX 35 surging by nearly 6%. The IBEX 35 climbed to 9,359 on Wednesday, outperforming its regional peers.
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GBP: Pound remains strong
Sterling maintains its strength as the week draws to a close, remaining unchanged against the euro compared to this time last week, and with fresh weekly gains of around nearly 0.4% against the US dollar.
GBP/USD over the past year
EUR: Investors look to next week’s ECB decision
The remainder of the week is pretty quiet on the eurozone data front however, next week the big event on everyone’s radar will be the European Central Bank’s interest rate decision.
USD: Initial Jobless claims to rise
The latest initial jobless claims are scheduled to be released at lunchtime today. In the previous release, it was revealed that the number of Americans who filed for unemployment benefits rose by 2,000 from the week before to 232,000. This pointed to the highest number in one month, however numbers were still below market forecasts of 235,000.
Many will be keeping a close eye on the US dollar to see how it responds to today’s data.
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