In the euro area, figures for German factory orders for May are released. However, given that the data were collected before the UK vote, the market impact may be limited.
In Sweden, the Riksbank's monetary policy decision is due at 09.30 CEST. We do not expect any new monetary policy action but the Riksbank is likely to revise its GDP forecast downwards somewhat in the wake of Brexit, necessitating a push of the first hike in the repo rate forecast towards or even into 2018. In addition, this means there is a possibility it will have to revise down the end-point as well, flattening the repo rate forecast. This should not be taken as an indication of a lower neutral interest rate, only that reaching the inflation target will take an even longer time than previously envisaged.
In the US the ISM non-manufacturing index for June is due for release. Both the Markit service PMI and ISM non-manufacturing showed a sharp decline in May but the Markit service PMI for June indicates a stabilisation. We expect the ISM non-manufacturing index to have been unchanged at 52.9 in June.
To read the entire report Please click on the pdf File Below