This week is filled with high-profile data releases, so make sure you’re prepared for these potential earning opportunities!
Not only do we release quarterly GDP and retail sales data for China, but we also have reports on inflation and consumer spending from major economies.
Before all of that, I wrote ICYMI A quick recap of market topics That pushed the currency pairs last week. check it!
Now for the closely watched economic indicators on the calendar this week:
Data dump in China
Things got off to an exciting start, however China’s GDP for the second quarter It is available on Mondays (July 17, 2:00 a.m. GMT) It may show a jump from 4.5% quarterly growth to a massive 7.1% expansion during the second quarter of 2023.
Note that the past three releases out of four have exceeded expectations, so we might be in for another bullish surprise this time around. However, other data points subtracted may also indicate a slowdown.
For example, industrial production numbers are set to show a decline from 3.5% y/y to just 2.5% in July. Also, the retail sales report may indicate a significant drop in consumer spending from 12.7% year over year to just 3.4% last month.
Inflation reports
After that we have Canadian inflation reports Line up for Tuesday (July 18, 12:30 PM GMT). This could be crucial in setting the tone for the BoC’s policy bias, so better keep an eye on the Canadian dollar’s reaction to the release.
As discussed in Event guide for Canada’s June 2023 CPI reportAnalysts are counting on a slight slowdown in inflationary pressures for this month. The headline reading is set to drop from 0.4% to 0.3% on a monthly basis, while the average CPI could drop from 3.8% to 3.6% on a yearly basis.
Another major economy is due to print inflation data in the middle of the week new zealand, Which will release the consumer price index for the second quarter of the year on July 18th, 10:45pm GMT.
Much slower price pressures are in focus for this period, as the reading could drop from 1.2% to 0.9% qoq, suggesting that the RBNZ may remain in hand for a while.
Remember, the central bank actually announced its first pause in tightening last week and even indicated that the OCR may remain at current restrictive levels now with slowing global growth and inflationary pressures.
Last but not least is the United kingdom which will print its CPI numbers on July 19, 6:00 PM GMT. A decrease in the headline inflation rate is expected, as the CPI reading is expected to decline year-on-year from 8.7% to 8.2%.
However, stronger-than-expected UK inflation readings may keep the Bank of England on a narrow path, as the central bank continues to scramble to control price pressures.
Retail sales data
Also because July 18, 12:30 PM GMT Do US consumer spending report for the month of June. Estimates are for a 0.5% mom gain in headline retail sales, stronger than the previous 0.3% rise, while the core figure could accelerate from 0.1% to 0.4% monthly growth.
Rounding off retail sales releases for the week are the numbers from United Kingdom and Canada line up for friday, July 21st.
The former may record a slight decline in consumer spending from 0.3% MoM in May to a slight rise of 0.2% in July while the latter may see a more significant slowdown from 1.1% to 0.5% for the headline figure.