ASIAN ECONOMIC DATA AND THE ECB HEADLINE A BUSY WEEK FOR FINANCIAL MARKETS
CHINESE DATA SETS THE TONE
Chinese second quarter gross domestic product and retail sales figures set the tone for the start of the new trading week, with Asian data heavily in focus as the week progresses.
The Bank of Japan interest rate decision and policy statement take center stage this week, as central banks across the world tighten monetary policy, whilst the BOJ holds firm with large scale asset purchases and ultra-low interest rates.
We also see the European Central Bank interest rate decision and press conference with ECB President Mario Draghi on Thursday.
Monday, July 17th, CHINA Q2 GDP FIGURES
The week begins with second quarter GDP figures from the Chinese economy, financial markets will pay close attention to this report, at a time when the PBOC are actively intervening to slow economic growth.
The annual growth figure is expected to come in at 6.8%, whilst the quarter on quarter comparison figure is forecasted to come in at 1.7%.
Tuesday, July 18th, German ZEW Survey
During the European trading session, we see the release of the German ZEW survey, which shows the measure of the current situation for the German economy, and the economic sentiment for the month of June.
The report takes on importance at a time when the euro currency is starting to gain strength, and may soon hurt impact on the German manufacturing sector.
Wednesday, July 19th,
During the Asian session, Japanese import and exporting data is released for the month of June. The Yen currency should become volatile the figures are released to investors.
The Japanese economy relies heavily on overseas exports, as the local manufacturing sector creates large amounts of jobs and generates GDP revenue.
Thursday, July 20th, ECB And BOJ Interest Rate Decisions and Monetary Policy Statements
The Bank of Japan is expected to keep interest rates unchanged at -0.10%, with the monetary policy statement largely expected to underline Japanese policy makers commitment to low interest rates and large-scale asset purchases.
The European Central Bank governing council is not expected to announce any major changes on Thursday, however, the ECB policy statement and Q&A session following the ECB press conference should create volatility in the euro currency, as ECB President clarifies the future direction of monetary.
Friday, July 21st, Canadian June CPI
The release of June inflation figures for the Canadian economy comes at a time when the Bank of Canada is starting to raise interest rates, as Canadian policy makers become hawkish on the domestic economy.
During the previous policy meeting, subdued inflation in the Canadian economy was mentioned, and this report should shed some light onto whether weak inflation is a temporary factor, or should be something of concern to the Bank of Canada.