Banc De Binary’s Ahead of the Week Report July 28 - August 1, 2014
A reminder that last week the Bank of England did the expected and left the key interest rate at 0.5 percent. It's worth noting that BoE sent signals of a possible rate rise in the near future, when the nine-member committee released a statement saying that the economic picture is more balanced now. In the week coming up, the main trading highlight is the NFP figure on Friday August 1st.
The data releases are medium-impact on Monday July 28th. Data releases are mostly from the US, with Markit releasing its PMI report for July at 13:45. The benchmark is reported on an annual basis and was previously at 61, with expectations of a rise to to 61.5. Then, at 14:00, the US releases Pending Home Sales for July on a monthly basis. This figure was previously 6.1 percent. At 23.30, there's another medium-impact event in Japan, when the country releases its unemployment rate for June, previously reported at 3.5 percent.
On Tuesday July 29th, there is more data out of the US, which releases its Consumer Confidence report for July at 14:00. The benchmark was previously at 85.2, with expectations of a slight rise to 85.5.
On Wednesday July 30th, CHF traders can look out for the KOF Leading Indicator release for July at 07:00, previously reported at 100.4. The big event for Wednesday is at 12.30 when the US releases its annualised second quarter GDP figure for 2014, previously at MINUS 2.9 percent, and expected to come in at 2.9 percent. Then, at 18:00, all eyes will be on the Federal Reserve's interest rate decision. A reminder that the current rate is at 0.25% and its bond purchases are at 20 billion dollars per month.
On Thursday July 31st, the EU is in the spotlight. At 07.55, Germany releases its Unemployment Change and Unemployment Rate for July. Unemployment in Germany is holding steady at 6.7 percent, according to the latest reports. At 09:00, the Eurozone releases its annualised Consumer Price Index, previously at 0.8%. Analysts are pointing to deflation worries, so this is a key benchmark to watch on Thursday. The EU's Unemployment Rate for June is released at 09:00 and was previously reported at 11.6 percent. The last high-impact event on Thursday is Canada's GDP, reported on a monthly basis for May, with a previous figure of 0.1 percent.
Finally, on Friday August 1st, the highlight of the week is the US Non-Farm Payroll figure for July, due out at 12.30. It was previously at 288K, and is expected to be 230K. The US also releases its Unemployment Rate for July, previously reported at 6.10 percent, and expected at 6.11 percent.
That was Ahead of the Week from Banc De Binary’s Trading Room research team.
