Key events ahead: UK CPI, German ZEW expectations – Danske

FXStreet (Barcelona) - Arne Lohmann Rasmussen, Chief Analyst at Danske Bank, previews the key events and data releases ahead in the day – Greece negotiatlions, German ZEW expectations, UK CPI and the US housing starts.

Key Quotes

Greece remains in the spotlight and today the euro working group is said to discuss Greece, while the Syriza parliamentary group should also meet.”

“The European Court of Justice will today give its final ruling on the legality of ECB’s OMT bond buying programme. The EU Court in an interim ruling in January said that the OMT programme was legal under certain conditions. It would be a big surprise if the OMT does not get a final approval.”

German ZEW expectations for June are due for release. We expect a further move lower in line with the recent correction in stock markets and the decline in the Sentix index. However, German hard data were good in the beginning of Q2 and an improvement in the expectations component would be a signal that the progress continued in the first part of the summer.”

UK CPI inflation is expected to have increased to 0.1% y/y in May from -0.1% in April. Core inflation is also set to rise to 0.9% y/y in May from 0.8% in April.”

“In the US, housing starts and building permits are released and we look for a further rise in starts after the jump in April but for a decline in building permits. Note that the NAHB housing market index released yesterday was higher than expected and reached the highest level since September.”

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