Pound is retreating after yesterday’s Mark Carney’s speech. BoE governor admitted that labor market condition is worse than MPC had anticipated, and bank rates hikes may delay. Markets reacted with sell off.
Also US data disappointed with Retail Sales data, which came near to 0%.
Today morning we have bunch of European data. GDP releases that came earlier today, showed GDP contraction in Germany in 2Q and zero growth in 2Q in France. These are very weak numbers from two biggest EMU economies.
We still wait for final CPI y/y reading from EMU, where flash came 0.4% and economists expect same final result.
Also ECB monthly bulletin is worth some attention as it shows macro data which is being analyzed by the Governing Council.
US session should be calm today and only import prices dynamics may impact market a bit because of its impact on CPI.
