FXStreet (Delhi) – Kasper Kirkegaard ,Chief Analyst at Danske Bank, notes that after the Chinese market close Thursday and Friday last week, focus is likely to return to FOMC and several important data releases which are due later this week.
Key Quotes
“The euro area Sentix investor confidence released today is one of the first survey indicators for September and will be watched with greater interest than usual, as it gives a first indication of the impact on sentiment from the financial and EM market turmoil.”
“We will also receive German industrial production figures for July. While exports to China might show weakness, several factors are pulling export growth in the other direction. The weaker euro in July and the solid US economy suggest strong German exports.”
“There is less than two weeks to the September FOMC meeting and the ‘data dependent’ outlook remains frustratingly mixed. Friday’s US employment report was no exception with lower-than-expected non-farm payroll growth at 173,000 but also positive revisions (lifting the three-month average to a solid 221,000) and a further drop in the unemployment report to 5.1%.”
“However, with signs of a loss in economic momentum (not least in manufacturing) at a time when inflation remains low and given the current volatility on financial markets our Economic Research team continues to forecast that the first rate hike will not come before December.”
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