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Forex - Weekly outlook July 12-16

Published 07/11/2010, 06:23 AM
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Investing.com – The week beginning July 12 follows one during which the euro's rally against the U.S. dollar stalled on Friday after hitting a 2-month high the previous day as sentiment toward the euro remained cautious.

Earlier in the week, the single currency had been boosted by strong German factory orders, upbeat U.S. employment data and positive signals on euro zone bank stress tests from European Central Bank president Jean-Claude Trichet.

Next week will see the euro zone produce data on trade balance, economic sentiment, consumer price inflation and industrial production. The ECB will produce its monthly bulletin while Germany will publish reports on consumer sentiment and inflation. France is to publish inflation data and Italy will produce a report on its trade balance.

Meanwhile, the U.S. will publish data on trade balance, federal budget balance, retail sales, producer and consumer inflation as well as key unemployment data. The U.S. is also to publish two important manufacturing indices and two reports on business outlook. Data on business inventories, crude oil inventories and natural gas storage is also due for publication.

Also in the U.S., Federal Reserve chairman Ben S. Bernanke is to speak early in the week and his comments will be closely watched for clues to the future direction of monetary policy. The minutes of the last meeting of the Federal Open Market Committee are also due to be published and will be closely watched.

Elsewhere in the world, Britain is to publish key unemployment data as well as a report on gross domestic product. The country will also produce data on inflation, house prices and consumer sentiment. Switzerland will publish data on inflation while the Bank of Japan is to announce its benchmark interest rate.

Canada will publish data on its trade balance, Australia will produce key housing data and New Zealand is to publish important reports on retail sales and inflation.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, July 12


Britain will begin the week by publishing data on gross domestic product, a leading indicator of economic growth as well as reporting on the country's current account. Australia will publish data on home loans, an important indicator of economic health.

Meanwhile, in the U.S., Fed chair Ben Bernanke is to speak in Washington, his comments will be closely watched for clues regarding future monetary policy.

Tuesday, July 13


Britain is to produce key data on consumer inflation, a leading indicator of economic growth. The euro zone is to publish an important report on consumer sentiment while Germany is to publish separate data on consumer sentiment.

Both Canada and the U.S. will publish data on their trade balances, that is, the difference between the value of imported and exported goods. Later in the day, New Zealand will produce data on retail sales, a key indicator of consumer confidence.

Wednesday, July 14


The U.S. will produce data on retail sales, a leading indicator of consumer confidence. Also in the U.S., the minutes of the last meeting of the Federal Open Market Committee are also due to be published and will be closely watched.

Meanwhile, Britain is to publish key employment data, an important indicator of economic health. In Australia, the Governor of the central bank, Glenn Stevens is due to deliver a speech and his comments will be closely watched for clues regarding future monetary policy.

The euro zone is to publish data on consumer price inflation and industrial production. There will be a bank holiday in France.

Thursday, July 15

The Bank of Japan is to announce its benchmark interest rate. Later in the day, the U.S. will publish key data on initial jobless claims, a leading indicator of economic health as well as key data on inflation.

Also in the U.S., the Philadelphia manufacturing index and the New York manufacturing index, both leading indicators of manufacturing growth, are due to be published. Meanwhile New Zealand is to publish key inflation data.

Friday, July 16

The U.S. will publish data on consumer price inflation, a leading indicator of economic growth. The Department of the Treasury is due to publish a report on capital flow into the U.S. and the University of Michigan is to publish preliminary data on consumer sentiment and inflation expectations. The euro zone will publish data on its trade balance and Italy will also publish its trade balance.

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