key European and US data reviewed - ANZ

Analysts at ANZ noted that German CPI was above expectations coming in at 1.5% y/y in June against 1.4% in May and expectations of 1.3%.

Key Quotes:

"That will raise expectations for the EA HICP print tomorrow. The consensus is that it will fall back to 1.2% from 1.4% with core at 1.0% y/y from 0.9% y/y. The lift in inflation, though minor, will be welcomed by the ECB who has turned more hawkish on growth lately."

"Across the pond, US Q1 GDP (the third iteration) beat expectations, rising at an annualised rate of 1.4% from 1.2% previously. Private consumption rose 1.1% (0.6%) so the headline data are a bit firmer."

"But attention is on the current dip in US inflation and the weaker Q1 price index (1.9% vs 2.2%) in the GDP data will reinforce that. Initial claims at 224k were pretty much as expected and show the labour market remains strong."