What’s next?The EU Summit on Brexit and final GDP are the centre of attention.
Major events in the coming week:
- High Street Lending: Tuesday, 8:30. This measure of lending reflects around two-thirds of mortgages. In April, they reported a level of 38K, up from the previous month.
- CBI Realized Sales: Tuesday, 10:00. The Confederation of British Industry provided a positive surprise in May with an upbeat score of 11. Another small increase could be seen for June.
- EU Summit: Thursday and Friday. Leaders of the European Union meet to discuss various topics and Brexit tops the agenda – specifically agreements on the Irish border and the Customs Union. Pound will remain pressured. In additions, the EU Summit will likely include a discussion on the trade spat with the US.
- GfK Consumer Confidence: Thursday, 23:01. The survey showed a slight improvement, up to -7 points, but negative figure still reflects pessimism among consumers. No changes are likely now.
- Final GDP: Friday, 8:30. The British economy grew by only 0.1% q/q and 1.2% y/y according to the first and second reads. The final release will likely confirm the same figures.
- Current Account: Friday, 8:30. Britain had a current account deficit of 18.4 billion pounds in the last quarter of 2017. A deficit is likely also for Q1 2018 and it may have widened.
- Net Lending to Individuals: Friday, 8:30. Net lending stood at 5.7 billion pounds in April, better than expected suggesting more economic activity. Another positive month is likely.
- M4 Money Supply: Friday, 8:30. The amount of money in circulation grew by 0.2% in April, above expectations and after two months of drops. Another modest rise could be seen for May.
- Mortgage Approvals: Friday, 8:30. Contrary to the High Street figure, the overall number of mortgages decreased to 62K in April. A minor rise could be seen now.
(All times are GMT)
