020 7898 0500The markets will no doubt be buoyed by reports that Merkel and Seehofer have seemingly averted a crisis by agreeing a border deal which the German Chancellor hailed as a ‘good compromise’. However, critics have described the deal as being unworkable at worst and a movement of the problem to another part of coalition at best. It remains to be seen whether the issue will rumble on, but Merkel will certainly be happy.
Retail sales increased by 1.4% in June 2018, following a downwardly revised 1.6% growth in April. The figure had been expected to come in at 1.5%. Month-over-month, retail trade across the eurozone remained unchanged and missed expectations of a 0.1% increase. The euro fell back against the pound, but managed to make some very slight gains against the dollar.
Today we have composite and services PMI from Germany and the eurozone. It will be interesting to see how the figures compare to the UK’s and whether they show evidence of increased growth; all four releases are forecast to increase in June from the month before.
