This morning saw worse than expected data from the UK. Average earnings (3 months/year for May) including bonuses grew by 6.2% against an expected 6.5%. This has caused a slight softening of the Pound versus the Euro. It has resulted in a number of business headlines focusing on the gap between earnings growth and inflation. The latest of these indicates the worst squeeze on income for 20 years.
Overnight the Rightmove house price index came out showing a bullish property market still with month on month growth of 0.4% and year on year growth of 9.3%.
Against the Dollar the Pound has shown a little short term strength and has pulled itself back above the recent lows.
Today sees a smattering of Euro and US data but the big numbers come tomorrow morning with the Peoples Bank of China releasing their interest rate decision first followed by the UK's inflation numbers at breakfast time. Analysts are predicting a lumpy year on year 9.2% growth in the price of goods which is further testament to the cost of living situation that looks like it's only going to get worse.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 HICP Inflation Data
US: 13:30 Housing Starts
CHN: Wednesday 02:30 PBoC Interest Rate Decision
UK: Wednesday 07:00 Inflation Data