Daily Economic Outlook: 9th July, 2015

Following last night's FOMC minutes, Greece remains very much on the radar for financial markets. The country has been given a 'final' deadline to reach a deal with its creditors by Sunday when a summit of all EU-28 leaders will take place in Brussels. Greece formally applied for ESM funding yesterday and is expected to provide details of a credible reform plan which will be assessed by the European Commission, the ECB and the IMF, states Lloyds Bank.

German's exports is likely to fall of around 0.8%m/m, estimates Lloyds Bank. While it is tempting to assign this to the impact of the Greek crisis, the fact is that exports surged by 2.0%m/m in April and look set to rebound strongly in Q2 overall, following a weak Q1. This is backed up by German factory orders data, released earlier this week, which point to a recovery in overseas demand. This should be supportive of GDP growth in Q2, adds Lloyds Bank.

In UK, following the release of the RICS house price survey overnight, the only scheduled event is the announcement of the Bank of England MPC policy decision. No change is expected and a 'standard' statement will therefore be issued, with the minutes of the meeting due in a couple of weeks. It is worth noting that, from next month, the policy announcement, minutes and quarterly Inflation Report will be released simultaneously, which could lead to some market volatility. Elsewhere, US jobless claims are due, while speakers include the ECB's Noyer and the Fed's Kocherlakota, Brainard and George.