Market themes of the Day: UK wages and Powell’s testimony headline the day

Image result for Market,themes,of,the,Day:,UK,wages,and,Powell’s,testimony,headline,the,day

What you need to know before markets open
In Europe

  • The Eurozone trade balance reached a €16.5 bn surplus in May 2018, compared with a surplus of €19.3 bn in May 2017.
  • The high profile Trump-Putin summit in Helsinki saw positive signs of collaboration starting between the superpowers with Trump being criticized for refusing to criticize Putin for the 2016 Presidential election meddling.

In the UK

  • The UK Prime Minister  May bows to Brexit pressure in parliament.
  • Ther Bank of England Governor Mark Carney and Deputy Governor Jon Cunliffe are scheduled to testify on the Financial Stability Report before the Treasury Select Committee in parliament.
  • The UK employment report for June is expected to see unemployment stack to four decades low of 4.2% while wages excluding bonuses are expected to decelerate to 2.7% y/y. For detail read my Preview here and benefit from trading the report with GBP/USD here.

In the US

  • The US retail sales retail sales increased 0.5% in June with data for May revised higher to show sales rising 1.3% m/m instead of the previously reported 0.8% gain. May’s rise in retail sales was the largest since September 2017.
  • Minneapolis Federal Reserve President Neel Kashkari said the flat yield curve requires rate hike pause.
  • The Federal Reserve chairman Jerome Powell is expected to stick to the gradual interest rate hiking policy path while testifying in the Senate’s banking committee. For details read Yohay’s Preview here.

In Australia

  • The Reserve Bank of Australia meeting minutes revealed that the next move in official interest rates is likely to be higher should progress in lowering unemployment and boosting inflationary pressures continue in the period ahead.

souirce:-fxstreet.