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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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UK house prices resume downwards trend

Emily Nicol
Chris Scicluna
  • Japanese MoF survey implies that firms’ capital spending was stronger than initially estimated
  • German retail sales ticked up only modestly
  • Euro area inflation is expected to take a big step down in May
  • Latest UK bank lending figures likely to flag negative impacts from ongoing tightening of financial conditions

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Tokyo inflation surprised on the downside

Chris Scicluna
Emily Nicol
  • UK retail sales returned to growth, with the firmest momentum in sixteen months
  • French consumer confidence moved sideways, but remained well below the long-run average
  • US personal spending and PCE deflators figures a key focus today

 

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