Today’s Flash PMIs in Germany, France and the euro area will give more cluesabout the slowdown in the euro area. For the euro area we look for a slight rise inmanufacturing PMI driven by Germany, as the pick-up in US and Chinese growth inQ2 should start to feed through to exports. For service PMI we expect a slight decline.
In the US Markit PMI is expected to stay flat at a robust level, although there isslight downside risk as retail sales have slowed a bit recently. The US also releasesexisting home sales where a moderate increase is expected, as the NAHB housingsurvey points to higher sales activity. US initial jobless claims are also due today.
In the UK retail sales are expected to rise 0.4%, continuing a decent development inconsumer spending.
In Norway we expect solid GDP growth in Q2 and this could force Norges Bank toraise its interest rate projection in its next monetary policy report.
Read the full report: FX Daily