The UK’s first monthly GDP release by the ONS showed that the economy had advanced 0.3% on the month in June. However, the positive GDP growth report was offset by manufacturing production which rose 0.4% missing estimates of a 1.0% increase. Construction output however beat estimates, rising strongly by 2.9% on the month. Industrial production on the other hand weakened, falling 0.4%.
Data from Germany showed that the ZEW economic sentiment index fell to -24.7 while the Eurozone economic sentiment index fell to -18.7.
The economic calendar today will see investors shifting focus to the BoC’s monetary policy meeting. Chances of a rate hike remain high as the economists polled expect to see the BoC raising rates by 25 basis points at today’s meeting.
The BoC meeting will be concluded by the press conference. Later in the day, the Bank of England Governor, Mark Carney is also expected to speak. From the Federal Reserve, the FOMC member, Williams is due to speak as well.
On the economic front, the U.S. producer prices index data is expected to show a modest slowdown to 0.2% increase in both core and headline PPI for June.
