Eurozone Growth, BoE Rate Decision, and US Economic Data in Focus
The European session is packed with significant economic data releases, including the Eurozone's Q2 GDP and German CPI. The Eurozone is expected to report a 0.2% growth rate, a slight improvement from the -0.2% prior quarter. However, the focus will be on inflation, as the ECB is more concerned with price pressures than growth rates.
The German CPI Y/Y is anticipated at 2.7%, up from 2.3% in the previous quarter. But it's the core measure that will garner attention, as it provides a clearer picture of underlying price trends.
In the Bank of England's rate decision, markets expect no changes to the Bank Rate, with a 7-2 vote split anticipated. The BoE statement will likely reiterate its commitment to keeping CPI inflation on track to meet the 2% target in the medium term. A hawkish signal would be a removal of 'as necessary' from the guidance.