FXStreet (Guatemala) – Analysts at Rabobank noted the key risk events ahead for the day.
Key Quotes:
“Today starts with a flurry of Chinese data: retail sales(consensus: 10.2% YoY but risks to the downside due to the stock sell-off, which hit auto sales); industrial production(consensus 6.0% YoY); fixed investment (consensus: 11.2% YoY, a further step lower); and Q2 GDP. The latter is seen at 6.8% YoY, below the psychological 7.0% level for the first time since 2009. However, we could get a surprise today given the equity bubble in April-May, and the pop in June, plus the usual opaque ‘smoothing’ that is always applied to Chinese GDP data. Expect AUD to move on these numbers if not CNY, which is still unofficially pegged.
Then we have the BOJ policy decision and a Kuroda press conference, which could see JPY move.
In the UK we have unemployment data, and then in the US PPI, industrial production, and the Beige Book, but all overshadowed by Janet Yellen’s semi-annual testimony to Congress. Will she take note of China, Greece, and the wobbly US consumer to kick the rate-hike can into late 2015, or even 2016? Or will she stick to the view that rates need to rise anyway? On her words, all markets will turn. As such, we all need to Learn How to Stop Worrying and Love the Bombshell.”
(Market News Provided by FXstreet)