FXstreet.com (Barcelona) - Investors are hawkishly watching the economic calendar this week, which promises to hold a fair share of drama and outlook ramifications. The focus in Europe will likely be on the flash PMIs for the region as well as France and Germany's number on Tuesday. The first Q2 GDP reading for the UK is due on Wednesday and markets are expecting the economy to remain in recession.
In addition, Germany's IFO surveys and the ECB bank lending surveys on Wednesday are also key, “with the latter a good update on credit creation in the Eurozone and it may help shape the ECB's near-term thinking.” write Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank. A Global Investment Forum will be held in the UK on Thursday ahead of the Olympics this Friday. Draghi, King, Lagarde, HSBC's CEO, and Google's Chairman are some of the scheduled speakers.
In the US the Markit PMI is out tomorrow and it will be interesting to see if this now follows the ISM below 50. In reality though a lot of attention will be on the first reading of the Q2 GDP on Friday. The market is expecting the US economy to grow at an annualized rate of 1.4% in Q2, which would be down from 1.9% in Q1. According to the analysts, “We are still experiencing one of the slowest recoveries in history which is worrying given that this one has seen the greatest amount of stimulus on record.” This question looms in the United States, already in the midst of an election year.
In addition, Germany's IFO surveys and the ECB bank lending surveys on Wednesday are also key, “with the latter a good update on credit creation in the Eurozone and it may help shape the ECB's near-term thinking.” write Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank. A Global Investment Forum will be held in the UK on Thursday ahead of the Olympics this Friday. Draghi, King, Lagarde, HSBC's CEO, and Google's Chairman are some of the scheduled speakers.
In the US the Markit PMI is out tomorrow and it will be interesting to see if this now follows the ISM below 50. In reality though a lot of attention will be on the first reading of the Q2 GDP on Friday. The market is expecting the US economy to grow at an annualized rate of 1.4% in Q2, which would be down from 1.9% in Q1. According to the analysts, “We are still experiencing one of the slowest recoveries in history which is worrying given that this one has seen the greatest amount of stimulus on record.” This question looms in the United States, already in the midst of an election year.
