The week ahead (17 – 21 July ) : Many data attract the attention of markets

16 Jul 2017 11:19 PM

The attention is once again turning to a number of central banks, waiting for what they will decide and whether it will turn towards narrowing the gap between their policies and the policy of the FED, which is on the path of tightening monetary policy and raise interest again before the end of this year. On the other hand, the markets keep their eyes on the Chinese economy and the data that may confirm the stability of the second largest global economies.

China's growth data
GDP data for the second quarter of 2017 are due to be released early Monday morning, and the economy is expected to slow to 6.8% after growing 6.9% in the first quarter of the year. China's industrial production data is expected to rise 6.5% in June, the same as in May.

Inflation data in New Zealand
New Zealand consumer price data is due to be released for the second quarter of this year early on Tuesday, and inflation data usually have a clear impact on the RBNZ's monetary policy expectations. Previous quarter data were back within the bank's range at 1%, And it is expected that the index will rise by only 0.2% in the second quarter.

British inflation data
Markets continue to expect the UK CPI to rise by 2.9% in June, the highest in almost four years, due to the depreciation of the pound following the vote on Brexit and the Uncertainties dominate the atmosphere, rising in inflation made opinions diverged within the BOE and some members called for a rate hike.

Australian Labor Market Data and Australian Reserve Meeting Minutes
RBA kept interest rates at the last meeting at 1.50% to stay at their lowest levels since August 16, 2016. The minutes of the meeting will provide more details about the policy makers' view and their outlook for the future of monetary policy.
The most notable economic data in Australia this week is data of change in employment numbers. The economy is expected to continue adding jobs in June by 15.3k jobs following the addition of 42K jobs in May.

BOJ monetary policy decision
The BOJ is due to announce its monetary policy decision on Thursday morning, and the current policy is widely expected to remain unchanged and the focus will be largely on the Bank's assessment of growth and inflation expectations. Eyes will focus on the press conference and what will come from Kuroda, Governor of BOJ.

European Monetary Policy Meeting
Markets are looking closely at the ECB meeting and the next meetings of the bank will be increasingly important in the next few months as the markets look to the start of the easing of the monetary easing program that launched in 2015 and then the beginning of the trend towards tightening monetary policy. Interest rates are expected to remain unchanged, and eyes will be heading to know the guidance of the ECB in the future, so markets will turn the attention towards Mario Draghi, Governor of the ECB during the press conference. Some experts believe that the ECB may wait for the September meeting before starting any move.

Tags: ECB BOJ Inflation


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