Heading into the FOMC decision due later this week, the analyst at Danske Bank note that the European Central Banka (ECB) President Draghi’s speech and the UK Conservative Leadership content-related news will hog the limelight this Monday.
“A busy week is coming up where the main focus will be on the Fed meeting on Wednesday , where we look for the Fed to prepare markets for a July cut and a total of 75bp cuts in H2.
Before that the ECB will take centre stage at the ECB Forum in Sintra , which starts today with opening remarks by ECB President Mario Draghi. Pressure is increasing on the ECB following a steep decline in market inflation expectations, weak growth data and soft inflation numbers. Later this week important decisions loom at the EU Summit.
Today we will get the first indication from the US of the Empire index for June. It surprised to the upside in May but the consensus expectation is a drop back in the June reading to 11.0 from 17.8. The US NAHB housing index is also up for release today.
In the UK, the Conservative Leadership contest continues with Boris Johnson being the favourite to become new Conservative leader and prime minister.”