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EURO LITTLE CHANGED FOLLOWING GERMAN PPI



Germany's producer price data has been released at 2.00 am ET Friday. The euro changed little against its major counterparts after the data.

The euro was trading at 130.01 against the yen, 1.0927 against the franc, 0.8564 against the pound and 1.1903 against the greenback around 2:05 am ET.

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DOLLAR EXTENDS GAINS AGAINST RIVALS



The U.S. dollar turned in another fine performance, gaining significant ground against its major rivals on Friday, as it continued to benefit from a hawkish policy outlook from the Federal Reserve.

While announcing its monetary policy on Wednesday, the Fed signaled that it would raise interest rates by 2023, and also likely taper its bond-buying plan sometime sooner than expected.

Fed Chairman Jerome Powell indicated during his post meeting press conference on Wednesday that the members have started discussions about scaling back the bond purchase program given higher inflation and faster economic growth.

The dollar index rose to 92.41, its highest level since mid-April. Despite paring some gains subsequently, the index remains quite high up at 92.28, more than 0.4% up from the previous close.

Against the Euro, the dollar firmed to $1.1867, gaining about 0.35%. The euro area current account surplus totaled EUR 23 billion in April versus EUR 18 billion surplus in the previous month, the European Central Bank reported.

The Pound Sterling was down too, fetching $1.3808 a unit, compared to $1.3926 on Thursday. Data from the Office for National Statistics showed that retail sales in the UK dropped 1.4% month-on-month in May, reversing a 9.2% rise in April and confounding expectations for an increase of 1.6%.

On a yearly basis, the retail sales volume growth moderated to 24.6% in May from 42.4% a month ago. This was also slower than the expected expansion of 29%.

Against the Yen, the dollar was slightly weak at 110.19.

The dollar strengthened to 0.7490 against the Aussie, gaining from 0.7552 a unit.

Against Swiss franc the dollar gained, fetching CHF 0.9224 a unit, as against CHF 0.9175 Thursday evening.

The Loonie weakened to 1.2440 a dollar, declining from 1.2358.

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CHINA KEEPS BENCHMARK LENDING RATES UNCHANGED



China kept its benchmark lending rates unchanged, as widely expected, on Monday.

The one-year loan prime rate was maintained at 3.85 percent and the five-year loan prime rate was retained at 4.65 percent.

The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April 2020.

As the People's Bank of China had kept the rate on its medium-term lending facility unchanged early this month, markets widely expected the rates to remain on hold today.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This lending rate replaced the central bank's traditional benchmark lending rate in August 2019. The PBoC has now fully reversed last year's credit acceleration using quantitative controls, Sheana Yue and Mark Williams, economists at Capital Economics, said. Accordingly, policy rate hikes that could prompt LPR increases are unlikely in the near future.

The key point for the economy is that the tighter credit conditions will act as a headwind over the coming quarters even in the absence of any rate changes, the economists added.

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FINLAND JOBLESS RATE FALLS IN MAY



Finland's jobless rate decreased in May, figures from Statistics Finland showed on Tuesday.

The unemployment rate for the 15 to 74 age group fell to 9.6 percent in May from 10.9 percent in the same month last year. In April, jobless rate was 9.0 percent.

The number of unemployed persons decreased by 25,000 to 275,000 in May from 300,000 in the last year.

The employment rate rose to 73.0 percent in May from 69.1 percent in the same month last year.

The number of employed persons grew by 138,000 from a year ago to 2.58 million.

On a seasonally adjusted basis, unemployment rate remained unchanged at 7.6 percent in May.

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DUTCH Q1 GDP FALLS MORE THAN ESTIMATED



The Dutch economy contracted more than initially estimated in the first quarter, revised data from the Central Bureau of Statistics showed on Thursday.

Gross domestic product declined 0.8 percent sequentially, bigger than the -0.5 percent estimated on May 18. GDP had remained flat in the fourth quarter of 2020.

The expenditure-side breakdown of GDP showed that household spending decreased 3.5 percent and government expenditure was down 2 percent. At the same time, gross investment in fixed assets advanced 3 percent.

Import of goods and services gained 0.8 percent and exports of goods and services grew 1.1 percent.

On a yearly basis, GDP contracted 2.4 percent annually, after falling 2.9 percent in the fourth quarter. The decline for the first quarter was revised from -2.8 percent.

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UK CONSUMER CONFIDENCE REMAINS STABLE IN JUNE: GFK



UK consumer sentiment remained unchanged in June, survey results from market research group GfK showed on Friday.

The consumer confidence index held steady at -9.0 in June, while it was forecast to rise to -7.0.

"A repetition of last month's score doesn't mean confidence is about to nose-dive," Joe Staton, client strategy director at GfK, said.

The upwards trajectory for the Index since the dark days at the start of the pandemic is currently still on track, Staton said. However, forecasts for rising retail price inflation could weaken consumer confidence quickly.

Four measures of the index were up in comparison to the previous month, while one measure was down.

The index measuring past changes in personal finances gained four points to zero. The forecast for personal finances over the next year rose only one point to +11.

The measure for the general economic situation over the last year edged up one point to -47, while the expectations for the general economic situation over the coming twelve months dropped by six points to -2.

The Major Purchase Index improved by two points to -5 and the Savings Index was down one point to +21 in June.

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DOLLAR RECOVERS AFTER MID SESSION SETBACK



The U.S. dollar depreciated against its most major counterparts in the European session on Friday, as the nation's personal income slumped in May, easing fears over a faster tightening of monetary policy by the U.S. Federal Reserve. .

The currency recovered from lows post noon and even managed to gain some ground against some of its rivals.

In economic news today, a report from the Commerce Department showed the annual rate of core consumer price growth in May matched economist estimates. The reading on inflation said to be preferred by the Fed showed the annual rate of core consumer price growth accelerated to 3.4% in May from 3.1% in April.

According to the data released by the Commerce Department, personal income slumped by 2% in May after plunging by 13.1% in April. Economists had expected personal income to tumble by 2.5%.

Meanwhile, the report showed personal spending was virtually unchanged in May after climbing by 0.9% in April. Personal spending was expected to rise by 0.4%.

A report from the University of Michigan said that its consumer sentiment reading for the US was revised lower to 85.5 in June from a preliminary reading of 86.4. Although market had expected to score to come in at 87.4, it still remained the second-highest since start of the pandemic.

The currency was further weighed by stimulus optimism, after President Joe Biden announced that the White House has reached an infrastructure deal with U.S. Senators worth $579 billion.

The agreement proposes spending to rebuild roads, bridges and other traditional infrastructure over the next five years.

The package is expected to generate "millions" of jobs and will be funded through unused coronavirus aid money and returned state jobless benefits.

The dollar index dropped to 91.53 around mid morning, but rallied to 91.88 later on in the day. It was last seen at 91.80, down slightly from the previous close.

Against the Euro, the dollar was slightly weak at $1.1937, after recovering from $1.1977.

Against Pound Sterling, the dollar firmed to $1.3879, gaining from $1.3922.

The Yen gained marginally at 110.79 a dollar.

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BOJ SUMMARY: INFLATION LIKELY TO RISE IN H2 2021



Japan's inflation is likely to rise in the second half of 2021 as pent-up demand starts materializing, Bank of Japan policymakers said at the monetary policy meeting held on June 17 and 18.

According to the summary of opinions, inflation is set to be around zero percent in the short run.

Inflation is expected to increase gradually, mainly on the back of continued improvement in economic activity, a rise in energy prices, and a dissipation of the effects of a reduction in mobile phone charges.

Nonetheless, inflationary pressure is expected be only transitory due to an entrenched deflationary mindset.

As vaccinations have been progressing rapidly of late, Japan's economy is expected to recover to a certain extent in the short run, a member said.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE ECONOMIC CONFIDENCE DATA DUE



Economic confidence data from euro area and mortgage approvals from the UK are due on Tuesday, headlining a busy day for the European economic news.

At 1.30 am ET, the French statistical office Insee publishes unemployment data for the first quarter. The jobless rate is forecast to rise to 8.1 percent from 8 percent in the fourth quarter.

At 2.00 am ET, the UK Nationwide house price data is due. House prices are forecast to rise 13.7 percent on year in June, faster than the 10.9 percent increase in May.

At 2.45 am ET, the French statistical office Insee is scheduled to issue monthly consumer confidence survey results. The consumer sentiment index is forecast to rise to 100 in June from 97 in May.

At 3.00 am ET, Sweden's economic tendency survey data is due.

In the meantime, flash consumer prices and retail sales figures are due from Spain. EU harmonized inflation is seen unchanged at 2.4 percent in June.

At 4.30 am ET, the Bank of England is set to release mortgage approvals data for May. The number of mortgages approved in May is forecast to fall to 85,900 from 86,920 in April.

At 5.00 am ET, European Commission is slated to release euro area economic confidence survey data. The economic sentiment index is seen rising to 116.5 in June from 114.5 in May.

At 8.00 am ET, Germany's flash consumer price data is due. Consumer price inflation is forecast to ease to 2.3 percent in June from 2.5 percent in May.

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UK SHOP PRICES CONTINUE TO FALL IN JUNE: BRC



UK shop prices continued to fall in June, data from the British Retail Consortium showed on Wednesday.

The shop price index slid 0.7 percent year-on-year in June, after easing 0.6 percent in May. Non-food prices were down 1 percent in June.

Non-food prices, particularly for fashion, remained deflationary as businesses tried to prolong the recent pickup in consumer spend, Helen Dickinson, chief executive at BRC, said.

Food prices also fell, which is a testament to supermarkets battling to keep prices low for their customers.

The fact that shop prices remain in negative territory despite the recent rise in CPI is indicative of the competitive retail landscape in the UK and keeping prices low for as long as possible is good news for shoppers, said Mike Watkins, Head of Retailer and Business Insight, NielsenIQ.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE UNEMPLOYMENT, FACTORY PMI DATA DUE



Unemployment and factory Purchasing Managers' survey results from euro area are due on Thursday, headlining a busy day for the European economic news.

At 2.00 am ET, Destatis is slated to issue Germany's retail sales data for May. Economists expect sales to climb 5 percent on month versus -5.5 percent in April.

Half an hour later, Swiss retail sales and consumer price figures are due. Inflation is seen rising to 0.7 percent in June from 0.6 percent in May.

At 3.00 am ET, Purchasing Managers' survey results are due from Poland and Turkey. Also, unemployment data is due from Austria.

At 3.15 am ET, IHS Markit publishes Spain's manufacturing PMI survey results. Economists expect the index to fall marginally to 59.3 in June from 59.4 in May.

At 3.30 am ET, Sweden's central bank announces the result of the monetary policy meeting.

At 3.45 am ET, Italy's manufacturing PMI survey data is due. The factory PMI is seen at 62.2 in June versus 62.3 in the previous month.

Thereafter, final PMI survey reports are due from France and Germany at 3.50 and 3.55 am ET, respectively.

At 4.00 am ET, IHS Markit publishes euro area final manufacturing PMI data. The reading is expected to match the flash estimate of 63.1 in June.

Also, Italy's Istat is scheduled to issue unemployment data for May.

At 4.30 am ET, UK Markit/CIPS manufacturing PMI survey data is due. The score is seen falling to 64.2 in June, as initially estimated, from 65.6 in May.

At 5.00 am ET, Eurostat is scheduled to issue euro area unemployment data for May. The jobless rate is seen unchanged at 8 percent in May.

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AUSTRALIA HOUSING LOAN COMMITMENTS RISE TO RECORD HIGH



Australia's new housing loan commitments increased to a new high in May, data released today by the Australian Bureau of Statistics showed Friday.

New housing loan commitments rose 4.9 percent in May to a new high of A$32.6 billion, driven by investor housing loan commitments.

The value of new loan commitments for investor housing rose 13.3 percent to A$9.1 billion, which was the highest level since June 2015.

New loan commitments for owner occupiers grew 1.9 percent to A$23.4 billion, the highest level since the series began.

However, for the third consecutive month there were falls in the value of loan commitments for residential land and the construction of new dwellings, ABS said.

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CHINA SERVICE SECTOR EXPANDS AT SLOWER PACE IN JUNE



China's service sector expanded at a much slower pace in June as the recent uptick in COVID-19 cases and reduced travel dampened overall new business, survey results published by IHS Markit showed on Monday.

The Caixin services Purchasing Managers' Index fell notably to 50.3 in June from 55.1 in May. Nonetheless, the index has remained above the neutral 50 mark for the fourteenth successive month. The slower upturn in business activity coincided with a softer increase in overall new work. New work from abroad meanwhile increased only marginally.

Employment across the service sector fell for the first time in four months.

On the price front, the survey showed that input price inflation eased to the lowest since September 2020. Services companies lowered their average output charges for the first time in nearly a year in June.

Although services companies remained strongly upbeat regarding the year-ahead outlook for activity, the resurgence of the COVID-19 virus dampened overall optimism in June. Moreover, the degree of positive sentiment slipped to a nine-month low.

The composite output index that measures the overall performance of manufacturing and services, slipped to 50.6 in June from 53.8 in May. The rate of growth was the softest seen in the current 14-month period of expansion and only marginal.

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AUSSIE ADVANCES FURTHER AFTER RBA DECISION



As expected, the Reserve Bank of Australia left benchmark lending rate and the 3-year Australian Government bond yield target unchanged at 10 basis points. Following the announcement, the aussie rose further against its major rivals.

The aussie was trading at 83.87 against the yen, 1.5696 against the euro, 0.7566 against the greenback and 1.0670 against the kiwi around 12:35 am ET.

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EUROPEAN ECONOMICS PREVIEW: GERMANY INDUSTRIAL OUTPUT DATA DUE



Industrial production from Germany and house prices from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is slated to issue Germany's industrial production data for May. Economists forecast industrial output to grow 0.5 percent on month, in contrast to a 1 percent fall in April.

At 2.45, foreign trade and current account figures are due from France.

At 3.00 am ET, the Czech Statistical Office is scheduled to issue industrial and construction output and foreign trade data. Industrial output is seen rising 32.7 percent annually in May.

Half an hour later, UK Halifax house price data is due. Economists forecast house prices to climb 1.2 percent on month in June, slower than the 1.3 percent rise in May.

In the meantime, Statistics Sweden is set to release industrial output and new orders data.

At 4.00 am ET, Italy's Istat publishes retail sales for May. Sales had decreased 0.4 percent in April.

At 5.00 am ET, EU economic forecast is due from the European Commission.

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FRANC LITTLE CHANGED AFTER SWISS JOBLESS RATE



At 1.45 am ET Thursday, Swiss unemployment data has been released. The franc changed little against its major counterparts after the data.

The franc was trading at 0.9247 against the greenback, 119.26 against the yen, 1.0915 against the euro and 1.2750 against the pound around 1:50 am ET.

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CHINA CPI SLOWS TO 1.1% ON YEAR IN JUNE



Consumer prices in China were up 1.1 percent on year in June, the National Bureau of Statistics said on Friday.

That was shy of expectations for an increase of 1.3 percent, which would have been unchanged from the May reading.

On a monthly basis, consumer prices fell 0.4 percent - again missing expectations for a flat reading following the 0.2 percent decline a month earlier.

The bureau also said that producer prices were up 8.8 percent on year - in line with expectations and slowing from 9.0 percent in the previous month.

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AUSTRALIA BUILDING PERMITS SINK 7.1% IN MAY



The total number of building permits issued in Australia was down a seasonally adjusted 7.1 percent on month in May, the Australian Bureau of Statistics said on Monday - coming in at 20,163.

That matched expectations following the 5.7 percent decline in April.

On a yearly basis, building permits surged 52.7 percent.

Permits for private sector houses sank 10.3 percent on month but climbed 55.2 percent on year to 13,571. Permits for private sector dwellings excluding houses rose 1.2 percent on month and 53.6 percent on year to 6,374.

The value of total building rose 4.5 percent on month, while the value of total residential building fell 6.7 percent and the value of non-residential building rose 28.5 percent

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AUSTRALIA BUILDING PERMITS SINK 7.1% IN MAY



Final consumer price figures are due from Germany and France on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is slated to issue Germany's final consumer prices for June. Consumer price inflation is seen at 2.3 percent, unchanged from the flash estimate.

In the meantime, the Bank of England is slated to issue Financial Policy Committee Summary and Record.

At 2.30 am ET, producer price data is due from Switzerland.

At 2.45 am ET, the French statistical office Insee publishes final inflation figures for June. Economists forecast consumer price inflation to rise to 1.5 percent, as initially estimated, from 1.4 percent in May.

At 3.00 am ET, industrial production and retail sales from Turkey and consumer prices from the Czech Republic are due. The Czech inflation is seen at 2.7 percent in June versus 2.9 percent in May.

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EUROPEAN ECONOMICS PREVIEW: UK INFLATION DATA DUE



Consumer and producer prices data from the UK is due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK consumer and producer prices for June. Inflation is seen rising to 2.2 percent from 2.1 percent in May. Factory gate inflation is forecast to rise to 4.8 percent from 4.6 percent a month ago.

At 3.00 am ET, Spain's statistical office INE is scheduled to issue final consumer prices for June. The final CPI is forecast to climb 2.6 percent annually, in line with flash estimate.

Half an hour later, Statistics Sweden publishes consumer prices for June. Economists expect inflation to ease to 1.3 percent from 1.8 percent in May.

At 5.00 am ET, Eurostat is set to publish monthly industrial production report. Eurozone industrial output is forecast to fall 0.2 percent on month, reversing a 0.8 percent rise in April.

At 7.00 am ET, Turkey central bank announces its monetary policy decision. The bank is expected to hold one-week repo rate at 19.00 percent.

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