The German economy will be in the spotlight again on Wednesday, with GfK Consumer Climate Index in focus. While the headline number needs consideration, the willingness to buy sub-component could be more market-moving. In June, the willingness to buy sub-index remained subdued, testing expectations of an improving economic outlook.
On Friday, German retail sales and unemployment figures will affect investor bets on a Q3 2024 ECB rate cut. Downward trends in retail sales and a softer labor market environment could and dampen demand-driven inflationary pressures.
Other stats include inflation numbers from France, which could prove pivotal as investors hope for inflation to weaken.
Beyond the economic data, investors should monitor French Election news and central bank commentary.
Sentiment toward the sustainability of the EU Project could be crucial for the EUR and ECB monetary policy goals.
The Pound
The Bank of England could…
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