Key EU data today - Westpac

By FXstreet.com | August 13, 2014 AAA

FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, reviews the day ahead, highlighting the European data calendar as very important today.

Key Quotes

The Bank of Korea is expected to cut its benchmark rate 25bp to 2.25% (around 11am Syd/9am Sing/HK but often not punctual). This would be the first cut since May 2013, indicative of the more pessimistic mood in Korea this year. Westpac however regards the move as unnecessary and almost certain to be a one off. Bank Indonesia is fully expected to hold the BI rate steady at 7.5% where it has been since Nov 2013.

The European data calendar is very important. The inputs to Q2 Eurozone GDP appear from mid-afternoon Sydney (3:30pm/1:30pm Sing/HK) with French GDP (f/c 0.1% q/q), then Germany (f/c -0.1% q/q after the 0.8% bounce in Q1). Consensus for the preliminary Eurozone reading is 0.1% q/q, 0.7% y/y but we look for a flat reading. The final July Eurozone CPI reading is due at the same time as GDP (5pm Sing/HK), expected to remain at an uncomfortably low 0.4% y/y which ECB president Draghi is keen to blame on technical factors.

The US data calendar is fairly quiet: weekly jobless claims and July import prices.

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD Doji Signals Bears Lacking Conviction At A Technical Barrier
    Forex News

    EUR/USD Doji Signals Bears Lacking Conviction At A Technical Barrier

  2. EUR/USD lies in wait at 1.2650
    Forex News

    EUR/USD lies in wait at 1.2650

  3. Asian recap: Aussie and Yen run the show, majors playing second fiddle
    Forex News

    Asian recap: Aussie and Yen run the show, majors playing second fiddle

  4. British Pound Could Close Out Week with a Bang on UK GDP
    Forex News

    British Pound Could Close Out Week with a Bang on UK GDP

  5. Highlights over next few days – Westpac
    Forex News

    Highlights over next few days – Westpac

Trading Center