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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The European Central Bank meets Thursday, with policymakers set to address their decision making process in the light of the recent policy strategy review.
- There remains much debate as to how the central bank will react, but there is an expectancy that President Christine Lagarde will at least outline a change in the Governing Council's forward guidance to accommodate the change in the inflation target to a symmetrical 2% over the medium term and that policy action will likely be 'persistent and forceful'.
- Although no change is expected in the main policy settings next week, there is an outside chance rate setters will discuss the introduction of new tools, even if the actual use of anything outside the current toolbox is unlikely.
- The deposit rate will likely be maintained at -0.5%, with the envelope on the PEPP held at EUR1.85 trillion.
- Restrictions will lift at a slower pace in other parts of the UK. How the economy fared through the first half of July will be seen on Friday, when the latest flash PMI data for both the services and manufacturing sector will be published.
- The flash manufacturing PMI is set to slow modestly to 62.4 from 63.9 in June, while the services PMI is set to dip from 62.4 in June to 62 in July.
U.S. jobless claims data filed through July 17 should continue sliding to a post-pandemic low of 350,000, down 10k from a week earlier. - Continuing claims should also drop to 3.050 million from 3.241 million a week earlier as a number of states that opted out of enhanced federal unemployment benefits are now reporting very low numbers of beneficiaries of federal programs.
- The large states of Texas, Florida, Georgia, and South Carolina cut off the benefits at the end of June and should report much lower numbers this week.
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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