The financial calendar for the week forward is anticipated to stay sparse as a result of summer season lull. But, regardless of the quiet interval forward, a couple of financial occasions will probably be of curiosity for market contributors.
Key occasions stand out over the week together with the assembly minutes from the Federal Reserve and the RBA. The annual Jackson Gap Symposium can be due which is able to, little question, generate some curiosity.
Japan’s Data Under Scrutiny
Last week, Japan posted a strong number for the second quarter, rather surprisingly. Investors will be looking to key economic indicators such as the trade balance, inflation data, and manufacturing sectors. The data will likely provide more information on how the economy is faring and whether the second-quarter strength in GDP will spill into the third quarter as well.
July Trade Figures to Show Falling Exports
Economists polled expect the trade figures due on Monday to fall 2.2% on the year. This is later followed by the flash for August. Manufacturing, as per the current trend, is expected to remain weak.
Inflation Expected to Remain Unchanged in July
The economic data from Japan ends with the inflation figures due on Friday. Japan’s core CPI, which excludes the volatile food and energy prices, is expected to remain unchanged in July.
In the previous month, the fell to a two-year low of 0.6% in June. The stubbornly low inflation gives the BoJ officials an impetus to ramp up its stimulus program. But, so far, officials have been skeptical about increasing the QE program.
ECB Minutes & Flash PMIs to Set Tone for Euro
After the European Central Bank dropped ample clues about potential easing, it followed through by officially confirming this at the July ECB meeting.
Draghi said that the central bank was looking to lower interest rates further and even restart the QE program. However, the decision for this is likely to come at the September monetary policy meeting. In the run-up to this big-ticket event, data from the eurozone will be closely watched.
The Italian prime minister will also be facing a vote of no confidence this week on August 20th.
Flash PMI & Inflation Figures to Give Broad Economic Picture
The week is relatively quiet with no top tier data coming out. However, the final inflation figures for the eurozone are due this week. Headline CPI rose by 1.1% on the year ending July, while core CPI rose to a pace of just 0.9% during the same period.
The final inflation figures will likely confirm the view that inflation remains weak for the eurozone. This will likely raise the prospects of some action from the ECB this week.
ECB Minutes Could Give More Clarity to Investors
This week, the central bank will be releasing its monetary policy meeting minutes. The minutes will likely show the deliberations behind the scenes. The plan to restart QE is as soon as once more elevating some opposing views from inside the governing council. The primary query from traders is how far the central financial institution will go with reference to constructing a sizeable stimulus program.
Jackson Gap Symposium to Overshadow Quiet Week
Not a lot is going on on the US entrance so far as the financial calendar is anxious. The will begin this week, with the G7 assembly following a couple of days later. Commerce conflict disputes and the central financial institution financial coverage course would be the fundamental subjects of discussions throughout these occasions.
Symposium Focuses on Financial Coverage Challenges
The annual Jackson Maintain symposium is entitled “Challenges for Financial coverage.” The theme comes as varied central banks have turned dovish, with some even shifting to an easing cycle. Fed Chair, Jerome Powell will probably be talking on August 23.
Fed Assembly Minutes to Give Extra Readability on Fed
On Wednesday, the Federal Reserve will probably be releasing its financial coverage assembly minutes. The cowl the July FOMC assembly the place the central financial institution lowered rates of interest by 1 / 4 foundation level. Nevertheless, the speed reduce was not unanimous. There have been two dissenting voters in the course of the assembly.
The central financial institution chief additionally made it very clear that the speed reduce was solely an adjustment moderately than the beginning of the easing cycle. The FOMC assembly and the Jackson Gap symposium are again to again and this might see some volatility for the USD.
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