Macro data front looks thin today – Danske Bank

Analysts at Danske Bank presents key economic events due on the cards in the day ahead, as the Big Fed week takes off.

Key Quotes:

“While the data front still looks thin today, a crucial week for markets takes off. This week, the Fed can either hold back or push markets closer to an H2 cyclical recovery. In the positive outcome, we see plenty of potential upside left in the CAD, AUD, NZD and Scandies against the USD. EUR/USD is also set to benefit but likely with a lower beta.

Preliminary EU harmonized inflation data for July from Spain is due out today. Bloomberg consensus expects a sharp deceleration to -1.2% m/m from -0.1% m/m previously.

The Dallas Fed manufacturing outlook level of general business activity for July is due to be published today. The index is likely to rebound from the current three-year low level as trade war escalation has stopped for now. Previously, businesses in Texas pointed to tariffs, and specifically trade talks with China, as a contributing factor to the prevailing uncertainty.”