With all of these big events on the calendar, the euro could end up taking a backseat. While the latest Eurozone economic reports were mixed (the PMIs were down but German IFO increased), the currency is supported by the European Central Bank’s hawkishness. In the coming week, Eurozone inflation, GDP and retail sales numbers are scheduled for release. Traders will be looking for these numbers to validate the ECB’s views but these reports will be less market moving than many of the other pieces of data and event risks on next week’s calendar. The most important thing to keep in mind is that the market is bullish euros so if the RBA disappoints or NZ data is soft, we could see strong gains in EUR/AUD and EUR/NZD. EUR/GBP will be driven by the BoE and UK PMIs, while the EUR/USD is likely to remain firm ahead of the U.S. non-farm payrolls report unless there’s a major upside surprise in ADP or non-manufacturing ISM.
Euro zone flash inflation figures
The euro zone will publish flash inflation figures for July at 0900GMT (5:00AM ET) Monday.
The consensus forecast is that the report will show consumer prices rose 1.3% this month, unchanged from June and well short of the ECB's target of just below 2%.
Perhaps more significantly, the core figure, without volatile energy and food prices, is seen holding at 1.1% from a month earlier.
In addition to the inflation data, the euro zone will publish a preliminary report on second-quarter economic growth on Tuesday. The region's economy is forecast to expand 0.6% in the April-June period, equivalent to an annualized 2.4%.
The European Central Bank called for patience and persistence in getting inflation back up to its target earlier this month. Central bank chief Mario Draghi added that discussions on the future of the bank’s asset purchase program would take place in the fall.
Euro zone flash inflation figures
The euro zone will publish flash inflation figures for July at 0900GMT (5:00AM ET) Monday.
The consensus forecast is that the report will show consumer prices rose 1.3% this month, unchanged from June and well short of the ECB's target of just below 2%.
Perhaps more significantly, the core figure, without volatile energy and food prices, is seen holding at 1.1% from a month earlier.
In addition to the inflation data, the euro zone will publish a preliminary report on second-quarter economic growth on Tuesday. The region's economy is forecast to expand 0.6% in the April-June period, equivalent to an annualized 2.4%.
The European Central Bank called for patience and persistence in getting inflation back up to its target earlier this month. Central bank chief Mario Draghi added that discussions on the future of the bank’s asset purchase program would take place in the fall.
