The Westpac Team previews the key data releases ahead in the day – UK CPI, German ZEW sentiment index, US May housing starts.
“UK CPI slipped to -0.1%y/y in Apr, and is likely to remain around zero for at least the coming months. Market consensus for the May print is 0.1%. The BoE suggests that temporary factors – oil prices, food prices and the appreciation of the pound – are weighing on inflation.”
“In Germany, the ZEW Jun survey of analysts’ expectations should continue to fall, to 38.5.”
“US May housing starts should pull back slightly after the stunning, weather-affected 20.2% gain in Apr, with the median at -4.0%m/m, while the number of units remains high.”