Interest rates, inflation and trade talks in stocks and forex eyes

InvestingOnline.com 6/08/2018, 14:20

The financial market is starting another busy week as investors are facing critical data in Australia, Japan, the United Kingdom and the United States. Stocks are ready to post gains; while the US dollar is on wait-and-see mode on trade war talks.

Investors will see inflation in down under, putting the Australian and New Zealand dollars on risk. The RBA will also publish its monetary policy report for August; expectations are for the bank to stay unchanged.

China will release its trade balance report; the United Kingdom will publish its gross domestic product while, together with the United States, it will announce its inflation numbers.

Stocks are poised to extend gains as investors are now confident about the health of the United States economy. The market will trade on summer mode, but the sentiment is positive. That being said, experts will be watching trade war talks closely.

On forex, the Dollar index is testing the 95.50 resistance, a break above there would trigger stop losses so that the break would be violent. Against its major counterparts, the Dollar is set to post gains. However, rate decision and trade talks would hurt the bullish dollar sentiment.

Check the most important economic data for the week:

Tuesday, August 7

• Australia: RBA interest rate decision
• Japan: Leading economic index
• Germany: Industrial production
• Germany: Trade balance
• Canada: Ivey PMI

Wednesday, August 8

• Australia: Westpac consumer confidence
  Australia: Home loans
  China: Trade balance
  New Zealand: RBNZ inflation expectations
  New Zealand: RBNZ interest rate decision
  Japan: Foreign investment

Thursday, August 9

• Australia: Consumer inflation expectations
• China: Inflation
• Switzerland: Unemployment rate
• Canada: Housing starts
• United States: Producer price index
• United States: Jobless claims
• Canada: New housing price index
• Japan: GDP

Friday, August 10

• United Kingdom: GDP
• United Kingdom: Industrial production
• United Kingdom: Trade balance
• United States: Inflation
• Canada: Unemployment rate