Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Dip in British shop prices relieves
In June, prices in UK shops went down at the slowest annual tempo since November 2013, as the British Retail Consortium informed on Wednesday, telling it actually expects soaring inflation pressure to prompt outright price leaps soon.
Overall shop prices inched down 0.3% year-on-year in June, unlike a 0.4% in May. As for te food price component, it grew 1.4%.
The Bank of England is currently monitoring gauges of inflation pressure in the British economy, as it considers whether to lift interest rates from their record minimum or not.
Obviously, the year on year numbers debunk the fact that prices have been climbing up for the last six months. As follows from the considerable deflation in the second half of 2016, there has been huge ground to make up in the year on year data.
Cost pressures experienced by retailers keep mounting.
For the last four years the BRC price index has demonstrated a deflationary trend, provoked by supermarkets engaging in a price feud war and dipping global crude and food prices.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.