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Analysts at Danske Bank suggest that the focus today will continue to be on the ongoing turmoil involving UK Prime Minister May and her cabinet.

Key Quotes

“Also, for the first time, we will receive a monthly GDP figure in the UK:this will provide an important pointer on the prospects of a Bank of England rate hike in August (market pricing points to 70% probability of this at present).”

Also on the data front, the German Zew data will be released this morning  , and we will pay attention in order to see if this will prove to be another improving German data point.”

In the Scandi sphere, Norwegian CPI will be released and we expect 1.2% on the core component, which should be on the strong side of consensus.  In order for a rate hike by Norges Bank to be postponed, we would have to see a very negative surprise. That said, one should not over interpret the figure due to the notoriously volatile flight ticket prices.”