020 7898 0500A subdued close to last week, with little data to dictate the market flow. The dollar seems to be reeling from the effect of a strengthening in the euro and fell to its lowest level against the single currency in two years.
Focus for the week ahead will be towards central banks, including the Federal Reserve who will be meeting on Wednesday. Markets now forecast less than 50% probability of a further interest rate hike this year.
Other economic data releases in the week ahead include the first estimate of GDP growth, due out on Friday. This is expected to show annualised growth at 2.8%, which is considered to be particularly strong, around double the slow pace we saw in quarter one.
Further to this, we’ll be hearing the employment cost index for Q2, also due out on Friday. Both data pieces will be of interest to the Federal Reserve and may inform their conclusions the following month.
