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Danske Bank analysts point out that in Europe,  Germany’s demand side data for June and preliminary inflation figures for July from France, Italy and the Eurozone are due for release today.

Key Quotes

“The figures are likely to show another marginal deceleration in both monthly and annual price growth. As the low German HICP figure yesterday was a surprise, we revised down our call for today’s Eurozone figures to headline 1.1%, core 1.0% (now in line with Bloomberg consensus).”

Preliminary Q2 19 GDP prints for Eurozone, Spain and Italy  are due today. We are likely to see a slowdown in the Spanish economy and growth deceleration in the Eurozone, while Italy’s economy has probably shrunk on an annual as well as a quarterly basis. We expect Eurozone’s GDP growth to land at 0.2% q/q. The flash release will not give many clues about the growth drivers, but we expect that lower investment spending was an important part of the story.”

“In the US ahead of the FOMC rate decision, the  ADP National Employment report  will reveal aggregated payroll data for July. The report is set to disclose whether more jobs were created in July recovering from the bottom seen in May 2019, which was a nine-year low.”