FXStreet (Guatemala) – Analysts at TD Securities noted the forthcoming EZ key data next week.
Key Quotes:
“Flash Eurozone PMIs (Fri 24 July): The flash PMIs are likely to provide further confirmation that the Greece debacle saw limited pass-through to the regional economy. We see decent upside risks to both German manufacturing and French services PMIs. While the market looks for a flat reading in Germany and small decline in France, we see at least a half point increase in both. This should keep the EUR supported as markets await further clarity from the Federal Reserve.
Flash Eurozone HICP (Thu/Fri 30/31 July): Overall, the recent fall in energy prices looks likely to have been enough to keep most base effects at bay one last month. This should delay slightly the inevitable reflation we should see into year-end. Overall, we see German HICP likely remaining unchanged at 0.1% y/y, though the risk is a slight tick higher to 0.2%. This implies a similar setup for the Eurozone figure on Friday. We expect that to remain unchanged at 0.2% y/y with a slight upside risk. Overall, this may be a slight disappointment to those expecting more immediate evidence of reflation, but in the end it means little for ECB policy.”
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