FXStreet (Guatemala) - Analysts at Rabobank give us our daily outlook for what we can expect from the calendar.

Key Quotes:

“Today has Australian trade data for May. Last month saw a disappointing swing into deficit and the expectation is for a further AUD200m deficit this month. The correlation between China’s credit impulse and Aussie exports continues to argue that there is still downside risk for the trade balance ahead, but that may not show up in full just yet: indeed, the FX market continues to shrug these concerns off for now (yet another example of global liquidity - and Australia’s “high” interest rate of 2.50% - beating such fundamentals) and an upside surprise today may even see AUD retake 95 for the first time since November last year”.

“The UK Nationwide house price survey will likely show the property market apparently remains insufficiently frothy ( at 11.2% YoY?) for policymakers to continue to act forcefully on it: recall that despite new limits on some mortgage loans the BoE have also said they will only be truly concerned about a housing bubble if prices rise another 20% over the next three years”.

“In the Eurozone we have May PPI, seen flat MoM and -1.0% YoY: yes, that means deflation at the factory gate, which is likely to keep the pressure on the ECB”.

“In the US we have ADP employment, where the expectation is 205K jobs added vs. 179K last month. It must be slightly galling for ADP to go to all the effort to produce this survey only for the market to only pay attention if the results start to correlate with the BLS payrolls report that follows: it must feel like being a local band that only get the audience’s attention when they perform cover versions of another artist’s hits (and even then no-one wants to buy their CDs or T-Shirts outside). There are also factory orders (seen -0.3% MoM) and Yellen lectures on central banking at the IMF, which should be by far the most important event of the day given central bank liquidity’s influence”.

“There are of course plenty of political risks for the markets to focus on should they deign that such developments actually matter for asset prices. For example, in Ukraine President Poroshenko has declared the ceasefire with pro-Russian separatists over and has said he will instead attack, suggesting much more fighting is to come; the new “Islamic Caliphate” in Iraq/Syria is apparently causing real worries about contagion in Jordan and Saudi Arabia, with both countries now reinforcing their borders against possible incursions; and a major escalation in fighting between Israel and Hamas, which could inflame an already volatile region, is also possible. However, if Yellen gives a “more of the same ahead” message, markets seem most likely to remain buoyant regardless”.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. 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.
  4. 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 ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Entrepreneurship

    Top Forex Trading Apps

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

You May Also Like

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!