Look ahead: Bank of England rate decision; eurozone flash consumer confidence; Accenture; Kroger
Eurozone flash consumer confidence comes amid rising uncertainty ahead of the French elections. Watch out for US building data and initial jobless claims.
Accenture and Kroger report earnings. Plus, why the Bank of England won’t be eager to cut interest rates as early as Thursday. We’ll have special analysis with IGTV’s Angeline Ong and DailyFX’s Richard Snow.
(Partial Video Transcript)
Bank of England's interest rate decision
Angeline Ong: Hello, I'm Angeline Ong and welcome to your “Look ahead” to Thursday, the 20th of June. We start off with the Bank of England interest rate decision. The key bank rate expected to remain at five and a quarter percent. And I'll be on deck with the one and only Richard Snow from DailyFX, part of IG of course, to break the reaction to those numbers for you.
It must be said that taking a look at GBP/USD here, that really it was all down to that headline CPI figure which dropped to the Bank of England's target of 2% for the first time in nearly three years, which got markets kind of excited.
But really, if you dig a little deeper, inflation pressures remain - goods inflation - and the figure was pulled down by lower energy prices. But everywhere else in the real economy, the real feel is that inflation remains very, very sticky and the Bank of England is not expected to do anything with the base rate because of that and will not be eager to do so until we see that real feel come down the core inflation rate, rather.
What else to expect?
Now, also, what's key is that after the Bank of England decision, we also have US building permits, housing starts. Initial jobless claims as well. And the Philadelphia Fed Manufacturing Index. This will be key to giving us a better understanding of how the US economy is faring. Retail sales, which were weaker than expected, offering more signs of perhaps some cracks in the economy, but doesn't seem to be holding the indices back.
Watch the full video for the full anlysis and tomorrow's anticipated trading updates
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