Euro retail sales are expected to have increased 0.5% m/m in June. Consumerconfidence, which is a good leading indicator for retail sales, has lost a bit ofmomentum but it is still at a high level (above the peak in 2010-11). Furthermore,German retail sales for June were strong, with an increase of 1.3% m/m.
European service PMIs are due for release and the first release in Spain and Italywill be most interesting. Both are at high levels but we see room for further progress,reflecting stronger domestic demand especially in Spain.
US ISM non-manufacturing is expected to have increased slightly to 56.2 from thealready high level of 56.0. This follows steady improvements during spring and theJune report showing upbeat comments and a strong outlook for most nonmanufacturingindustries.
In Scandinavia, Sweden will publish service PMI today.
Read the full report: FX Daily