020 7898 0500The key inflation data released last week has dampened expectations of an interest rate hike this year. In the meantime, Brexit continues to be a big talking point.
As it stands, it does not appear that the talks are progressing as smoothly as hoped, especially given that the EU’s chief Brexit negotiator has urged the UK to be more forthcoming. He has asked for more clarity on key issues, such as citizens rights and the ‘divorce bill’. Does this mean we are still pushing for a hard-ish Brexit deal?
Looking at the economic data releases for this week, it is mainly second tier data, bar one major economic reading. The market will mainly be focused on the first reading of the quarter two (Q2) Gross Domestic Product (GDP) figure which is set for release on Wednesday. Of late, economic data has been fairly soft, an example being the large decline we saw in retail sales for May. The GDP for Q1 was low at 0.2%, so the market will be keen to see if this bounces or continues down the same trajectory.
