FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, reviews the key events on the day ahead.

Key Quotes

"With markets pricing a 55% chance of an RBA cash rate cut by year-end and no major local data this week, there will be plenty of interest in the minutes from the RBA Board’s July meeting (11:30am Syd/9:30am Sing/HK). The statement a fortnight ago was barely changed from June but this does not preclude some new dovish language, as seen in the June minutes. Westpac's view remains no change in rates until a hike in Aug 2015."

"There is little or no tension over the outcome of the Bank of Japan meeting, expected any time after 11:30am Tokyo. There is only slightly more interest in the press conference by Governor Kuroda at 3:30pm local time, where he should sound content with the progress of the economy and inflation. Singapore releases May retail sales, a reminder of just how provisional the Q2 GDP estimate yesterday was. We are still waiting for China’s June loans and FX reserves data, with today listed as the final day of the release range."

"In the UK we will see June CPI, expected to still not be providing reason to bring forward rate hike plans, -0.1% m/m, 1.6% y/y. A year ago CPI was 2.9% y/y. Worth noting for EUR is the July ZEW reading on German investor sentiment, seen nearly steady at 67.4 current situation, 28.2 on expectations."

"A crowded US calendar kicks off with notable data: the July NY Fed Empire State manufacturing index and June retail sales. Consensus is for strong headline readings on both: +17 on Empire (though down a little m/m) and 0.6% on total retail sales, 0.5% ex-autos and gas, picking up from 0.3% and 0% respectively in May. Earnings reports include JP Morgan, Goldman Sachs and Intel."

"Fed Chair Yellen’s semi-annual testimony begins at 10am NY to a Senate committee. The Fed’s latest growth forecast for 2014 of 2.2% is unlikely to be met given the base effect of the Q1 contraction. But the main pressure on Yellen from the politicians will be from Republicans alleging that the Fed is taking risks with inflation and encouraging financial excesses by running loose monetary policy for too long. There will be a huge number of headlines over the day but our sense is that Yellen will push back on the criticism enough to leave USD somewhat weaker."

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!