The rate of increase in factory gate prices appears to be stabilising now that manufacturing input costs have largely fallen month-on-month since January. The annual rate of factory gate price inflation (output prices) remained at 3.6% for the third consecutive month and slowed on the month to 0.1%, from 0.4% in March and April. The annual rate of inflation for materials and fuels (input prices) fell back to 11.6% in May, continuing its decline from 19.9% in January 2017 following the recent strength of sterling.

In the US session PPI data was published. The Producer Price Index for final demand was unchanged in May, seasonally adjusted, the U.S.  Bureau of Labor Statistics reported today. Final demand prices rose 0.5 percent in April and edged down 0.1 percent in March. On an unadjusted basis, the final demand index increased 2.4 percent for the 12 months ended in May.Within final demand in May, a 0.3-percent increase in the index for final demand services offset a 0.5-percent decline in prices for final demand goods.

Tomorrow's session will bring UK job figures. Number of unemployed is anticipated to increase by 12,500 while Unemployment Rate should remain unchanged at 4.6%. In the US session CPI and Retail Sales figures will be released however the focus will be on Fed interest rate decision and following press conference. CPI is expected to increase to by 0.2%, while Retail Sales should incline by 0.1%. Fed is also forecasted to rise interest rates to 1.25%.

Figures to watch:

Claimant Count Change/Unemployment Rate (Wednesday 10:30)

CPI (Wednesday 14:30)

Retail Sales (Wednesday 14:30)

Federal Funds Rate/FOMC Statement (Wednesday 20:00)