G20 not likely to stir up any volatility when the markets open. Mostly talk about climate change. More importantly, anti-establishment riots have been as violent as ever in Hamburg. Then, Saturday, an estimated 70.000 peaceful protestors took to the streets. There is quite a large amount of discontent.
On Saturday, ECB’s Villeroy said “…next fall, we will go on adapting the intensity of monetary policy”. Policy adjustments in the fall are consistent with the market’s expectations – but this may also be an excuse for some profit-taking in Eur longs.
BoC and Fed Chair Yellen’s testimony will be the main attractions this week.
USD: fairly busy week for the US. Brainard speaks (Tues/Thurs), Fed’s Yellen Testimony (Wed/Thurs), PPI (Thurs), Evans speaks (Thurs), CPI & Retail Sales (Fri), UoM (Fri), Kaplan speaks (Fri).
EUR: quiet week. Ger Trade Balance & EUR Sentix (Mon), Eur Ind.Prod (Tue), Ger final CPI (Thur).
GBP: a few influential prints with MPC’s Haldane & Broadbent speak (Tues), Unemployment (Wed), Credit Conditions (Thur).
CAD: one of the focal points this week. Housing starts (Tue), BOC (Wed), New Home Price (Thur). To note, BOC’s 25 bps hike is basically discounted. The accompanying statement will thus be the focal point.
AsiaPac: China has CPI & PPI (Mon) along with Trade Balance (Thur). Aussie has NAB business Confidence (Tue) and Westpac Consumer Sentiment (Wed). Nzd only has Biz manufacturing index (Fri).
Going into the week, I will be biased short on Crude, Gold & Silver. I will be biased Long CAD vs. Aud, Gbp, Jpy and Short JPY vs. Cad & Eur.
by Jul 9, 2017 – 2.28 pm|
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