UK economy expands in May

Today's news headlines:

‘Surge in visits to doctors drives unexpected jump in economy’. A rise in visits to the doctors boosted UK GDP by 0.5% in May as healthcare and manufacturing activity bounced. These gains have masked underlying weakness in consumer spending, with hospitality and retail falling 0.1%. Travel bookings saw an uplift in May, with road hauliers also performing well. The Bank of England maintains that there will be weakness in the second half of 2022, with years of stagnation to come. (Bloomberg)

‘Sunak heads list of eight Tories vying to replace Boris Johnson’. Rishi Sunak is the odds-on favourite to take over as UK Prime Minister, with the list of candidates down to eight. Former Health Secretary Sajid Javid has dropped out of the race, while Home Secretary Priti Patel decided not to run to prevent further splits in the Thatcherite wing of the party. The second round of voting will take place this Thursday, with the new PM expected to be announced by the 5th of September. (Bloomberg)


Today

European shares followed Asian stocks higher this morning, with US equity futures in the green ahead of US Consumer Price Index data later today. The Euro continues to trade close to parity against the US Dollar as markets await a break of this significant level.

Events

Reserve Bank of New Zealand Official Cash Rate (July): 2.50% (est. 2.50%)
UK GDP m/m (May): 0.5% (est. 0.1%)
UK Industrial Production m/m (May): 0.9% (est. 0.0%)
UK Manufacturing Production m/m (May): 1.4% (est. 0.0%)
US Consumer Price Index m/m & CPI y/y (June): 1:30PM
Bank of Canada rate decision (July): 3:00PM


Interbank rates:

GBP/USD – 1.1913
GBP/EUR – 1.1894
EUR/USD – 1.0014
USD/CAD – 1.3021

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