The number of job openings edged down to 6.6 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were little changed at 5.8 million and 5.5 million, respectively. Within separations, the quits rate and the layoffs and discharges rate were little changed at 2.4 percent and 1.1 percent, respectively. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.

A rate increase by the Bank of England in August remains "very much" on the table, says Cathal Kennedy, European economist at RBC Capital Markets. The U.K. economy looks to be on course to expand by 0.3%-0.4% in the second quarter, with two months' data available, Mr. Kennedy says. The outlook for June looks positive on the back of improved PMI data and the 'feel good factor' from good weather and England's World Cup run. Mr. Kennedy's comments come after the statistics office published new monthly gross domestic product data for the first time. The data show the U.K. economy expanding by 0.3% month-on-month in May, accelerating from 0.2% month-on-month in April - via WSJ.

The value of permits issued by Canadian municipalities increased 4.7% to $8.2 billion in May. This followed a 4.7% drop in April, the only month this year where municipalities reported a total value below the $8.0 billion mark.

In the residential sector, municipalities issued $5.5 billion worth of permits in May, up 7.7% from April. This was the second-highest value on record, following the $5.7 billion worth of permits issued in October 2016. Five provinces posted increases, with Ontario and British Columbia reporting the largest gains.

The multi-family dwelling component reached a record high in May, with municipalities issuing $3.1 billion worth of building permits. The increase was the result of higher construction intentions in British Columbia, Ontario and Alberta

As long as EUR/USD stays above 1.15, Societe Generale prefers buying GBP/USD when it falls on political issues, it says. SocGen sees a strong and stable correlation between EUR/USD and GBP/USD. Both pairs trade lower on Tuesday, with EUR/USD down 0.4% at 1.1705 and GBP/USD down 0.2% at 1.3236 as the U.S. dollar rises broadly - via WSJ.

The ZEW Indicator of Economic Sentiment for Germany recorded a decrease of 8.6 points in July 2018 and now stands at minus 24.7 points. This is the lowest reading since August 2012 and well below the long-term average of 23.2 points. Since the beginning of the year, expectations have sunk by a considerable 45.1 points.

The assessment of the current economic situation in Germany decreased by 8.2 points, leaving the corresponding indicator at 72.4 points.

Commenting on today's GDP figures, Head of National Accounts Rob Kent-Smith said:

"The first of our new rolling estimates of GDP shows a mixed picture of the UK economy with modest growth driven by the services sector, partly offset by falling construction and industrial output.

"Retailing, computer programming and legal services all performed strongly in the three months to May while housebuilding and manufacturing both contracted.

Services, in particular, grew robustly in May with retailers enjoying a double boost from the warm weather and the royal wedding. Construction also saw a return to growth after a weak couple of months."

The total UK trade deficit widened £5.0 billion to £8.3 billion in the three months to May 2018, mainly due to falling goods exports and rising goods imports.

Falling exports of cars and rising imports of unspecified goods were mostly responsible for the £5.0 billion widening of the total trade deficit in the three months to May 2018.

Removing the effect of inflation, the total trade deficit widened £4.7 billion in the three months to May 2018; falling goods export volumes was the main factor as prices generally increased.

Excluding erratic commodities (mainly unspecified goods), the deficit widened £2.9 billion to £8.7 billion in the three months to May 2018.

In the three months to May 2018, services output increased by 0.4% compared with the three months ending February 2018.

The wholesale, retail and motor trade sector made the largest contribution to the three-month on three-month growth, contributing 0.11 percentage points.

The Index of Services increased by 0.3% between April 2018 and May 2018.

The wholesale, retail and motor trade also made the largest contribution to the month-on-month increase, contributing 0.18 percentage points.

In the three months to May 2018, the Index of Production fell by 0.6% compared with the three months to February 2018, due primarily to a fall of 1.2% in manufacturing; this was partially offset by a rise in mining and quarrying of 4.6%.

In May 2018, total production was estimated to have decreased by 0.4% compared with April 2018, led by falls in energy supply of 3.2% and mining and quarrying of 4.6%.

The monthly increase in manufacturing output of 0.4% was supported by increases in 9 of the 13 sub-sectors.

In the three months to May 2018, the Index of Production increased by 1.8% compared with the same three months to May 2017.

In May 2018 the seasonally adjusted industrial production index increased by 0.7% compared with the previous month. The percentage change of the average of the last three months with respect to the previous three months was -0.4.

The calendar adjusted industrial production index increased by 2.1% compared with May 2017 (calendar working days in May 2018 being the same as in May 2017); in the period January- May 2018 the percentage change was +2.8 compared with the same period of 2017.

The unadjusted industrial production index increased by 2.1% compared with May 2017.

The Brexit plan formulated by the Conservative cabinet late last week would position the UK for a relatively soft exit from the EU, but it faces significant challenges, Fitch Ratings says. It is not clear that the plan in its current form will be acceptable to EU negotiators and the UK parliament, as highlighted by today's resignations of two senior cabinet ministers.

The political, economic and institutional uncertainty stemming from the UK-EU negotiations is reflected in the Negative Outlook on the UK's 'AA' sovereign rating.

The UK government on 6 July said that it had agreed 'a more developed and comprehensive proposal' for the future economic relationship based on 'a free trade area for goods' with a common rulebook to ensure frictionless trade at the border. The relevant agreements would be interpreted under a 'joint institutional framework' with UK courts paying due regard to EU case law regarding the common rulebook. The UK would levy UK tariffs on goods intended for the UK and EU tariffs on goods intended for the EU.

Consumer prices in China were up 1.9 percent on year in June, according to rttnews - in line with expectations and up from 1.8 percent in May.

On a monthly basis, consumer prices eased 0.1 percent after sliding 0.2 percent in the previous month.

The bureau also said that producer prices jumped an annual 4.7 percent versus expectations for 4.5 percent and up from 4.1 percent a month earlier.

In May 2018, output fell back in the manufacturing industry (−0.6%, after +0.4% in April). It decreased slightly in the whole industry (−0.2% after −0.5%).

Manufacturing output decreased over the last three months (−0.5%), as well as in the overall industry (−0.8%).

Output decreased markedly in mining and quarrying, energy, water supply (−2.3%), in the manufacture of machinery and equipment goods (−1.2%), in the manufacture of transport equipment (−1.0%) and more moderately in "other manufacturing" (−0.4%). It tumbled in the manufacture of coke and refined petroleum products (−14.7%). Conversely, it grew in the manufacture of food products and beverages (+1.3%).

EUR/USD

Resistance levels (open interest**, contracts)

$1.1884 (1940)

$1.1847 (2592)

$1.1821 (155)

Price at time of writing this review: $1.1743

Support levels (open interest**, contracts):

$1.1696 (1787)

$1.1662 (2992)

$1.1623 (3065)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 13 is 78697 contracts (according to data from July, 9) with the maximum number of contracts with strike price $1,1600 (4284);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3409 (830)

$1.3368 (661)

$1.3340 (669)

Price at time of writing this review: $1.3248

Support levels (open interest**, contracts):

$1.3186 (1462)

$1.3158 (1404)

$1.3127 (1868)

Comments:

- Overall open interest on the CALL options with the expiration date August, 13 is 21673 contracts, with the maximum number of contracts with strike price $1,3600 (3189);

- Overall open interest on the PUT options with the expiration date August, 13 is 24789 contracts, with the maximum number of contracts with strike price $1,3100 (2432);

- The ratio of PUT/CALL was 1.14 versus 1.01 from the previous trading day according to data from July, 9.

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.