14 May 2014
European Open: BoE Quarterly Inflation Report in focus
FXStreet (London) - In its semi-annual Financial Stability Report released overnight, the Reserve Bank of New Zealand said that house prices fell further than expected after the central bank introduced mortgage lending restrictions in October last year.
Sales fell by 11 percent between October and March. Under the measures implemented in October, loans for more than 80 percent of a property’s value must account for no more than 10 percent of a bank’s new lending.
RBNZ chairman Graham Wheeler has raised rates twice so far this year, but has said that the effect of a stronger NZD on import prices could slow further rate hikes.
European CPI
In Europe today we have the final reading of German CPI for April as well as the French CPI data. Both releases will be under scrutiny following weaker-than-expected inflation growth last month.
UK unemployment expected to decline further
It’s a busy morning of data and events this morning in the UK, with labour market data as well as the Bank of England’s Inflation Report and subsequent press conference from Mark Carney. Expectations are for a further decline in UK unemployment. Consensus expectations are for a decline to 6.8 percent. However, the employment components of recent surveys suggest that we may see a more significant drop in the unemployment rate.
QIR expected to strike a cautious tone
The QIR will likely see an upward revision in GDP forecasts, but with less upside than previous QIR revisions. It is unlikely that we will see anything earth shattering in the report, and Mark Carney is unlikely to change to a more hawkish tone in the press conference. Some short sterling activity yesterday suggested that the markets knew something about the QIR before its release, and suggests that the report will strike a cautiously dovish tone despite the consistent improvements in the UK economy.
Quiet US session
There’s a quiet US session expected this afternoon, with only PPI data of any note. Expectations are for a rise in headline PPI of 0.3 percent, driven by food and energy price increase, while core PPI is expected come in at 0.2 percent.
Sales fell by 11 percent between October and March. Under the measures implemented in October, loans for more than 80 percent of a property’s value must account for no more than 10 percent of a bank’s new lending.
RBNZ chairman Graham Wheeler has raised rates twice so far this year, but has said that the effect of a stronger NZD on import prices could slow further rate hikes.
European CPI
In Europe today we have the final reading of German CPI for April as well as the French CPI data. Both releases will be under scrutiny following weaker-than-expected inflation growth last month.
UK unemployment expected to decline further
It’s a busy morning of data and events this morning in the UK, with labour market data as well as the Bank of England’s Inflation Report and subsequent press conference from Mark Carney. Expectations are for a further decline in UK unemployment. Consensus expectations are for a decline to 6.8 percent. However, the employment components of recent surveys suggest that we may see a more significant drop in the unemployment rate.
QIR expected to strike a cautious tone
The QIR will likely see an upward revision in GDP forecasts, but with less upside than previous QIR revisions. It is unlikely that we will see anything earth shattering in the report, and Mark Carney is unlikely to change to a more hawkish tone in the press conference. Some short sterling activity yesterday suggested that the markets knew something about the QIR before its release, and suggests that the report will strike a cautiously dovish tone despite the consistent improvements in the UK economy.
Quiet US session
There’s a quiet US session expected this afternoon, with only PPI data of any note. Expectations are for a rise in headline PPI of 0.3 percent, driven by food and energy price increase, while core PPI is expected come in at 0.2 percent.