Federal Reserve policy meeting will hog the limelight this week. The U.S.’s and U.K.’s first GDP estimates for Q2 will be released as well as Bank of Japan meeting minutes and Markit PMIs. In addition, many countries will publish their CPI reports.
Monday is a Markit day. Both preliminary manufacturing and services PMIs for various countries will be released. The German services PMI is expected to pick up to 54.3 from 54.0 before, while manufacturing to 59.3 versus 59.6 the preceding month. In the Euro area as a total, services sector PMI is anticipated to edge up to 55.6 from 55.4 before.
The German Buba monthly report will be released by Deutsche Bundesbank. In the second half of the day, the flash U.S. Markit manufacturing and services PMIs are also expected, as well as existing home sales for June. Later in the day, the Bank of Japan will release the monetary policy meeting minutes which may impact the Japanese yen, as in the last meeting BoJ cut inflation forecasts despite that they kept interest rates on hold.
On Tuesday morning, the German IFO survey is expected to show a small decline to July’s business climate to 114.9 versus 115.1 before. The current assessment is predicted to tick marginally lower to 123.9 from 124.1 before while expectations are anticipated to edge lower to 106.6 from 106.8 the preceding month. A couple of hours later, the Confederation of British Industry will release its CBI industrial trends survey for orders. In the U.S., the S&P/Case-Shiller Home Price Indices for May is coming out, as well as the housing price index for the same month. During the night, the Bank of Japan Deputy Governor Nakaso will give a speech which will probably impact the Japanese yen. Moreover, Australian CPI report will be published followed by a press conference from RBA's Governor Philip Lowe.
In the middle of the week, trader’s attention will be on the Federal Reserve policy meeting and the U.K.’s preliminary GDP as well as the inflation hearings report which will be presented by House of Commons. The U.K. economy is expected to rise by 0.3% quarter-over-quarter in Q2 against the last quarter's rise of 0.2%. On annual basis, the market consensus is for 1.7% for the second quarter of the year, following 2.0% the first quarter.
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