UK: July CPI is the key data release this week

Aug 16, 2015 22:20 pm UTC| Commentary

July CPI is the key data release (Tues) in UK, with the secondary focus on retail sales (Thurs). For CPI, a slightly below consensus dip is expected in the headline figure to -0.4%m/m, - 0.1%y/y (cons: -0.3%, 0.0%), with...

Chinese Yuan poses upside risk for USDJPY; Q2 GDP in focus

Aug 16, 2015 21:54 pm UTC| Commentary

The combination of a slower Chinese growth and cheaper CNY (and other Asian currencies which combined with China carry a 49% weight in JPY REER) should put upward pressure on the yen to depreciate against USD, even if the...

Politics should dominate price action for Brazil this week

Aug 16, 2015 21:38 pm UTC| Commentary

Volatility continues to dominate price action in Brazilian assets as political turmoil remains the main driver. With so much uncertainty around the political outcome in Brazil, BRL should keep its downward trend, in an...

Headwinds keep building against the looney

Aug 16, 2015 21:14 pm UTC| Commentary

Last week, oil reached a multi-year low price, with Canadian crude taking a particularly strong hit. The effects of the oil shock most likely will continue to ripple through the Canadian economy, putting pressure on the...

Chinese Yuan fixings to guide Asian FX amid a light calendar week

Aug 16, 2015 20:57 pm UTC| Commentary

The pace of CNY depreciation is expected to slow. Asia currencies, which have been dragged lower by the yuans slide, could catch a breather in this respect. However, the Feds tightening and weak exports/growth are expected...

GBP: Spending rebound amid falling prices

Aug 16, 2015 20:50 pm UTC| Commentary

UK inflation is likely to move even further away from the BoEs 2% target in July, encouraging the central banks recent dovish bias and the cautious GBP view of gradual outperformance against the EUR but material...

Euro area flash PMIs to be little changed

Aug 16, 2015 20:37 pm UTC| Commentary

In a relatively quiet week, euro area August flash PMIs (Friday) are likely to confirm continued recovery in the manufacturing sector but no acceleration in growth. We forecast the manufacturing PMI to drop slightly to...