EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi opens relatively flat today with key gains made on the Yen as we see the NZDJPY return to the 76 levels (wholesale rates).
German economic outlook hits a six-year low
German investor confidence fell to a 6-year low on the survey from the Centre for European Economic Research (ZEW) as trade war fears escalate. The ZEW Indicator of Economic Sentiment plummeted to -24.7 in July, its lowest level since August 2012. Economists had expected the index to edge down to -18.0 from June’s reading of -16.1.
China inflation ticks higher
China’s annual consumer inflation rate for June (YoY) came in at 1.9% compared with 1.8% in May, which was in line with expectations. The producer price index, a gauge of industrial profitability hit a 6-month high rising to 4.7% in June from 4.1% in May driven by rising oil prices.
Overnight we have the Canadian rate decision with expectations of a rate hike to 1.50% from 1.25%.
US inflation numbers will be the key event this week and will be released on Thursday night.
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