08/06/2026
MARKET UPDATE
Weekly market outlook: GDP, inflation, central banks and FX
The UK calendar is relatively quiet this week, with the main release arriving on Friday in the form of GDP. Consensus forecasts point to a monthly reading of -0.1%, which would mark a 0.4 percentage point drop from the previous figure. Even so, the number is likely to be watched closely for signs of how resilient the domestic economy remains in a period of weaker confidence and uneven growth.
In the euro area, attention will turn to Thursday’s interest rate decision. Markets have been leaning towards a quarter-point increase as policymakers respond to renewed inflation pressure, much of it linked to higher energy costs stemming from conflict in the Middle East. The challenge for the ECB will be balancing inflation control against an already fragile growth backdrop.
In the US, the latest inflation report will be another major focus. Expectations are for the annual rate to come in around 4.1% to 4.2%, a level that could revive discussion around further Federal Reserve tightening. If inflation proves stickier than hoped, markets may have to reassess the outlook for rates and risk assets over the coming weeks.
In currency markets, the South African rand has weakened enough for GBP/ZAR to recover last week’s losses and trade near 22.1, while USD/ZAR is holding around 16.56.