FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, shares his review for the day ahead.
Japan releases its Jun CPI data at 9:30am Syd/7:30am Sing/HK, where the steep upswing from -0.9% y/y in March 2013 to 3.7% y/y in May is finally set to top out, with consensus 3.5% y/y. The strong inflationary impulse of yen depreciation is now waning, given USD/JPY stability. Tokyo CPI for July is seen falling to 2.8% y/y. Singapore releases June IP data, usually a volatile report.
There is some EUR risk in the European calendar again, with the German IFO survey of business sentiment due. Consensus is for a slight decline in the headline index, to 109.4, with current conditions around 114.5, expectations 104.4. Sterling faces another data challenge as we see the advance reading on Q2 UK GDP. Consensus is 0.8% q/q, 3.1% y/y, very similar to Q1 but Westpac looks for 0.7%, which probably wouldn’t be taken well by jittery GBP/USD.
In the US we will see June durable goods orders, seen up 0.5% m/m. This should elicit little response ahead of next week’s jam-packed calendar which includes the FOMC meeting, July non-farm payrolls, July ISM and several other notable releases.