European futures are indicating a slightly higher open as investors look ahead at data for sings the UK and Eurozone are in their recovery stage. Yesterday’s UK GDP data could help towards a stronger case to keep interest rates unchanged after the annual inflation in the UK slowed to 2.8% in July from 2.9% in June. Asian stocks swung between gains and losses on low trading volumes as Hong Kong cancelled trading due to a typhoon.
The dollar strengthened to a one-week high versus both the euro and yen after US retail sales advanced at the fastest pace in seven months strengthening expectations the Federal Reserve will taper its stimulus.
UK unemployment rate will be watched closely after the Bank of England announced UK unemployment must fall to 7% before tightening its policy stance. We will also see how the MPC members voted to hold interest rates with the MPC Official Bank rate votes at 9:30 today.