Today’s macro data showed further decline of consumer prices in Spain by -0.5% and also bigger than anticipated drop in private loans in EMU (-1.6% vs 1.5% expected). These readings fueled debate the over next ECB’s move decision. Analysts are wondering if ECB will add more stimulus to the economy after it cut rates in June and announced TLTRO in July.
In the afternoon session US will publish preliminary GDP growth in 2Q. First release was 4.0% annualized and now economists expect it to be revised to 3.9%. Also weekly unemployment claims and new home sales will be of some importance – we expect positive results as US housing and labor market are showing signs of recovery.
