The Week Ahead
The week begins with CBI Industrial Trends Orders which is anticipated to not move the market. The main release of the week is Retail Sales on Friday. The YoY figures are expected to remain negative but improve whilst the MoM figures are forecast to fall. This could place further pressure on the Pound. Investors will also be keeping an eye on COVID-19 cases in the UK as well as any developments in the relationship between the UK and China.
The RBA will be in the spotlight tomorrow as the RBA Meeting Minutes are out and Governor Lowe will speak about the current predicament of the economy. Given the recent outbreak in virus numbers from Victoria, investors will be keen to listen in on any potential good news from Governor Lowe. Retail Sales for June will be released on Wednesday giving potential signs of the COVID-19 impact and recovery. Thursday will have Commonwealth Bank’s Manufacturing PMI for July with an expected continued expansion.
Looking to the US trading session in the week ahead, the Chicago Fed Activity Index and Redbook Retail Sales for the previous week will be released tomorrow. This will be followed by the 4-Week Average Jobless Claims and Initial Job Losses for last week on Thursday.
This week is off to a slow start with data as today we will only see the German Purchasing Price Index which is expected to improve from -0.4% to 0.2%. The eyes, however, will be on the European summit which was expected to be closed off over the weekend but is looking to potentially head into Monday as opposing sides look to work through their differences. The week then closes out with Services and Manufacturing PMI’s for France, Germany and the EU with overall improvements forecast.
Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Error & omission excepted.