FXStreet (Guatemala) – Analysts at Rabobank explained that Besides Greece and Iran, today will focus on how much further the Chinese equity rebound can be sustained and also noted the key events ahead for european and Us markets for the week.
Key Quotes:
“Despite my view that the equity bubble there is still very far from being resolved, as margin lending remains extremely high, reports that police are continuing to investigate “suspicious” transactions, and parts of the market still being frozen, means that the Chinese authorities are effectively doing to stock bears (and the overall equity market) just what Germany is doing to Greece: scaring them into submission.”
Tomorrow we see UK CPI; the German ZEW survey; US retail sales; and the NFIB business survey. Wednesday has Chinese retail sales, industrial production, fixed investment, and Q2 GDP; in Japan there is the BoJ policy statement and a Kuroda press conference; and in the US we have PPI, industrial production, and Yellen’s critical semi-annual testimony to Congress, which will be the perfect opportunity for her to signpost a rate hike, if one is indeed coming.
Thursday has Eurozone CPI and the ECB rate decision – though that obviously isn’t the key decision that Mr Draghi will be making this week given the fluid dynamic in Greece; the US has the Philly Fed survey and the NAHB housing index. Friday has US housing starts, CPI, and Michigan consumer confidence.
In short, plenty of key data ahead, and timely communication from the Fed – and yet this is potentially background noise to developments that may be of truly historic importance.”
(Market News Provided by FXstreet)