European Retail Sales and Confidence Falls, Will The ECB Be One And Done?
• USDJPY – Japanese household spending fell 3.2% in May, which was a three year low. Rising inflation has curbed spending. Indeed, the region saw its core inflation gauge rise 1.5% from a year earlier after a 0.9% increase in April. Meanwhile, industrial production rose 2.9% in May rebounding from a 0.2% decline the month prior. Despite, the results the government downgraded the sector as rising costs continue to weigh on manufacturers, while the country moves closer to a recession. Discuss the topic and your trade ideas in the USD/JPY Forum.
• GBPUSD – U.K. final GDP was revised lower to 0.3% from earlier estimates of 0.4% for the first quarter. The worsening housing slump and waning consumer confidence led to a contraction in the service industry. Meanwhile, the current account deficit shrank to 8.4 billion from 12.2 billion as inflows from goods increased. The results shows the economy hasn’t entered a recession yet, which may allow the BoE to consider a rate hike at its next policy meeting. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – The Euro-Zone retail PMI gauge fell back into contraction in June at 44.0, after a rebound in April to 53.1. Retail sales fell sharply as rising food and energy costs sapped consumer’s purchasing power. Meanwhile, confidence in the region fell more than expected as the same issues are clouding the outlook for the economic region, which may leave the ECB room for only one rate hike. Discuss the topic and your trade ideas in the EUR/USD Forum.
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