The week ended was light in terms of economic calendar. The new one is more interesting with a patch of economic data that might not alter the sentiment but, will likely allow to envision if Central Banks’ recent actions and its forward guidance language are aligned with fundamentals set to be released ahead.

On Monday, the German IFO indexes for June will be released. In the afternoon (European session), US Durable Goods Orders for May are expected to contract 0.6% over April, while core US Durable Goods Orders for the given period are expected to increase 0.5%. Later in the session New Zealand’s Trade Balance will be reported for May.

On Tuesday, investors will face a tepid schedule with UK’s Inflation Report Hearings driving the attentions in the morning and later in the session the S&P/Case-Shiller HPI update for April.

On Wednesday there is more action, starting with Swiss reports, followed by US Pending Homes Sales and finally the Fed Monetary Policy Report.

On Thursday, the Asian session will report Japanese Retail Trade data, Foreign investment in Japan Stocks and Foreign bond investments; for Australia, New Home Sales for May by the Housing Industry Association. In the European session, the German GfK Consumer Confidence is expected unchanged in July, at 10.4; followed by UK’s Mortgage Approvals in May, expected at 64K from 64.64K in April. Fundamental data for the Eurozone regarding Consumer Confidence and Business Climate are expected to reinforce perceptions that the member area might have accomplished an interesting performance in the 2nd quarter. The German flash CPI for June will be reported and the year-over-year headline will likely slide to 1.4% from prior 1.5%. For the US, there are quarterly PCE and core PCE figures set to be released and the final version for US Q1 GDP QoQ expected at 1.2%.

On Friday, Japan will report its CPI. Prices are slowly rising, though still far from BOJ’s target. June’s year-over-year headline CPI for the Eurozone is expected at 1.2% vs. prior 1.4%, while the underlying CPI is expected to accelerate to 1.0% vs. prior 0.9%. In the US, figures for PCE and core PCE on a monthly and yearly basis are expected to unveil that inflation is moving in the wrong direction, when regarded the latest move by the Fed. And possibly signaling a pause in Fed’s interest rate hikes until next December.
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