Markets turn focus on Greek referendum ahead of next week’s data releases

Aside from next week’s economic data releases most of the market’s focus before the new trading week starts, will be on the Greek referendum scheduled for Sunday. There is a lot of risk associated with this vote because a “no” vote would create market volatility and bring Greece closer to leaving the euro. Meanwhile, a “yes” vote to accept the creditors’ proposals, is likely to see the resignation of Greek Prime Minister Alexis Tsipras and then most likely snap elections.

Looking at the economic data for next week:

Monday has few tier-one data, with perhaps German factory orders figures worth looking at followed by the Eurozone Sentix Investor Sentiment Index. Then from the US, the latest US Markit non-manufacturing (Services) PMI data will be released.

On Tuesday, the highlight of the day will be the Reserve Bank of Australia’s latest interest rate decision and statement. Rates are expected to remain unchanged at 2% but the statement will be important to watch to get more insight into the central bank’s outlook on the economy.

From Europe, industrial production data will be announced by Germany and then the UK, which will provide important gauges of economic growth momentum.

Industrial production numbers are the first major release of the week in the UK.

The US will release the latest international trade data.

On Wednesday Japanese current account figures are released. Focus will then turn to the UK’s Budget Release.

The highlight of the day will be the release of the FOMC minutes. Markets will closely watched the minutes for any signals that the Fed is getting ready for a rate hike in September. After June nonfarm payrolls numbers were disappointing it would be interesting to see the Fed’s view on the labor market. A dovish statement would be dollar-negative.

On Thursday, the Asian session will be quite busy with Australian employment data and an update on consumer inflation expectations. At the same time, China releases both consumer (CPI) and producer price inflation (PPI) data. Any weakness in inflation adds further to chances of more stimulus measures.

The focus in the European session will be the Bank of England as it will announce its latest monetary policy decision. No change is expected but looking at the MPC statement would be good for hints on rate hikes.

From North America, we will see Canadian housing starts and US jobless claims data.

Friday sees releases such as Japanese consumer confidence and the UK trade balance, ending with the latest unemployment data from Canada and the Monthly Budget Statement in the US.

The post Markets turn focus on Greek referendum ahead of next week’s data releases appeared first on Forex Circles.

Source:: Markets turn focus on Greek referendum ahead of next week’s data releases

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