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UK GDP posts modest growth in April

Chris Scicluna
Emily Nicol
  • Fed set to pause tightening cycle, focus on dot-plot and guidance for near-term policy path
  • Euro area IP to have risen in April, but will fail to reverse the weakness at the end of Q1

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UK labour market much stronger than expected

Chris Scicluna
Emily Nicol
  • Japanese survey signals marked improvement in domestic economic conditions and expectations for the second half of the year
  • Final German CPI inflation data confirmed a notable drop in headline inflation to a fifteen-month low
  • As the FOMC’s two-day meeting gets underway, all eyes will be on US CPI report, with headline inflation expected to fall to the lowest since March 2021

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Fed set to pause tightening cycle

Emily Nicol
Chris Scicluna
  • ECB expected to raise rates by a further 25bps
  • BoJ to leave unrevised its yield curve control framework

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Japan's labour earnings disappointed

Emily Nicol
Chris Scicluna
  • More encouragingly, basic pay growth in Japan rose to a four-month high
  • Japanese household expenditure fell for the third consecutive month 
  • German factory orders fell short of expectations
  • UK retail survey suggested that sales growth weakened as high prices continued to erode households purchasing power

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Japan’s services PMI reported a series high

Emily Nicol
Chris Scicluna
  • Updated euro area GDP figures are highly likely to see the modest growth initially reported revised away
  • German goods trade surplus unexpectedly rose 
  • US services ISM survey for May likely to suggest ongoing expansion in the sector

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