The currency markets have been mostly rangebound on Thursday, although Cable has broken down, below 1.3100, to make new 2018 lows and looks very heavy. US stocks are higher, with the indices generally up by around 0.5%. Oil is also higher, by around 0.7% while Gold remains very heavy, now below 1250 oz.
In terms of data, the US Q1 GDP growth was finalised at 2.0%, revised down from 2.2% , missing expectations of 2.2%., while the GDP price index was revised up to 2.2%, from 1.9%. The initial jobless claims rose 9k to 227k in the week ended June 23, above expectation of 220k, while the continuing claims dropped -21k to 1.705m in the week ended June 16.
Friday will begin with a whole heap of Japanese data, including the Tokyo CPI, the Japan Unemployment and Industrial Production, Construction Orders, Housing Starts and Consumer Confidence figures for May. The Australian New Home Sales and Private Sector Credit figures for May are also due in Asia. From the EU, we get the May German Retail Sales, Import/Export Index and Unemployment Change for June although the main focus will be on the EU Preliminary CPI for June (exp 1.0%mm, 2.0%yy). The UK will see the Q1 GDP figure (exp 0.1%qq, 2.2%yy) and Total Business Investment, also for Q1 (exp -0.2%qq, +2.2%yy). Note that ECB President Mario Draghi will be present at the European Council meeting in Brussels,.
The US will look to the May PCE Index (exp 1.9%), Chicago Purchasing Managers Index, and Michigan Consumer Sentiment Index. Have a good weekend.
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