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.

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!